The primary and vital goal of humans is protection against risk factors and this leads to the term Life insurance. Life insurance is insurance for one and one’s family’s peace of mind. It is basically a contract between a life insurance company and the policy holder or the insured person in which the company promises to pay a sum of money upon the death of the policy holder. The policy holder and the insured person can also be different but generally it’s the same. In return the insured person agrees to pay a stipulated amount in regular intervals or one can pay in lump sums. Upon the death of the insured person, the company requires acceptable proof of death before it pays the amount. The general minimum proof is the death certificate of the insured person. The company may investigate the circumstances surrounding the death of the insured person if the policy amount is large. Depending on the policy or the contract the claim can also be done on other events like terminal illness.
Few years back there were limited options in insurance policies. But today there are lots of options within life insurance like term life insurance, whole life insurance, endowment life insurance etc. Various types of payments are also available now which has made things very fast and easier. Life insurance also gives one options that can reduce taxes and build tax-advantaged income for retirement. The insurance market has now a lot of competition. One does not have to go out for the policy. If one is clear about what coverage he or she needs the companies visit their homes and give policies. Let’s throw some light on insurance market in Australia.
The insurance market of Australia is very ethical and well developed. This market is specific and generally large insurers focus on only one type but due to the competition that they are facing from global financial companies the companies have broadened their policies into more general financial services. Life insurance which is sold in Australia is termed life insurance and disability income insurance. The life insurance companies like AMP Limited, AXA, Allianz Australia operate in Australia.