Australia: The Two Truths Every Family Must Know About Life Insurance

Two surprising discount opportunities reveal that life insurance may be more affordable than many realize. This is the important rule to follow to make sure your family is covered in an accident or tragedy.

The first truth is that if you're under 70 years old and don't smoke, you may qualify for two major discounts. By age, these are the average savings for non-smokers: a 51-52% discount for those in their 40s and 50s, a 45% discount for those in their 30s, and a 31% discount for those in their 20s.1

In addition, it is estimated that there is a 26.5% potential savings by comparing multiple life insurers.2

There are life insurance companies offering coverage right now for single adults, children and full families–requring no medical exams. And, monthly costs are as little as a few dollars for adults and for children.

There are many discounts and they vary by insurer. Comparing today's life insurance pricing and plans may provide you with a great deal.

4 Overlooked Stats Supporting Life Insurance

We'll pay to insure our car and often our cell phones, but not having life insurance leaves the most important people in our lives to worry. Without life insurance, your family must find enough money to pay for burial costs, any debts, mortgages, and car loans. If they don't have the savings, then they may have to take out more debt. With life insurance, the family can focus on grieving and has nothing to worry about financially. Aussies can look at average expenses to determine a recommended coverage:3

1) Average cost of a funeral with cremation: $7,400.
($19,000 for a burial with funeral service, headstone, and interment.)

2) Average cost to raise a child in Australia: $297,600.

3) Average home price in Australia: $656,800.

4) Average full-time income in Australia: $78,800.

The recommended amount of life insurance coverage typically is $500,000.

Term life insurance policies are the most popular and easiest to understand. Here's a brief explanation of popular plans:

Term policies are very inexpensive. Choose to be covered for a certain amount of years (such as 10 to 30). If you pass during this time period, your family will be completely covered and financially secure. If you do live longer, many companies will allow you to convert the plan into a whole life insurance plan.

Whole: This is like term, but there's both a death benefit and a cash value. Also, it has no time limit and is expected to continue until one passes. You're able to cash much of your investment out of Whole for any reason. Many over 50 years old will use this for retirement.

There are many Australian life insurers. The truth is: by comparing insurers and plans, it is the best way to know if you're getting a fair rate.

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