Are you looking for an affordable term life insurance plan? Australians are fortunate because there are several available options when it comes to term life insurance products. The most affordable and practical for individuals and families is what is called as term life insurance policies. So far, term life insurance is the cheapest in terms of premiums required. However, policyholders are still provided with large benefits or sums insured.
There are many factors that make term life insurance more affordable compared to all other types of life insurance. First premiums may be tax deductible, if owned under a Super fund. After-tax costs could lower total amounts of premiums by up to 45%. Second, there is an option to select the term of the policy. You could opt to receive a lump sum in case you incur a terminal disease of permanent disablement in fixed terms of 5 years, 10 years, or 15 years. There could even be more flexibility regarding the term of insurance.
Third, term life insurance products usually do not impose penalties on late or defaulted payment of premiums. However, there is a condition that policies need to be current to be eligible for benefits if inevitable and unlikely circumstances occur. It is the sole responsibility of a policyholder to make sure his or her premium payments are updated.
Although if you miss three months of premiums your policy will lapse and you will need to re apply disclosing any new health conditions.
Lastly, term life insurance products used to impose a money-back benefit. That means that you used to be able to purchase products that could give back the total accumulated amount of premiums paid if the policyholder has not filed for any claim for benefit in the entire period or term of insurance. This is also used as a form of reward for policyholders who pay premiums in full or in time for regular due dates. Thus, the product is all the more attractive to many consumers. It could be like saving money and getting a life insurance at the same time. Although in the Australian Life Insurance market consumers preferred just term life insurance and insures have all withdrawn this product from new clients only. If you still have one of these polices be sure to keep your policy going.