Insurers that offer premiums plans usually cover at least 35 types of illnesses; whereas insurers that offers basic and cheap plans, offer financial protection against less than 15 diseases.
Offered to both men and women
Insurers in Australia offer this type of insurance policy to both men and women. In addition, children can also be protected under this plan provided the insurer offers this option to the policy holder. Alternately, children’s life insurance plans can be purchased since these plans offer similar benefits for children when they are critically ill.
Trauma insurance offer a variable compensation payout which means that the payout you receive will depend on a few factors such as the illness you are affected with and the cover limit you have chosen. Choosing a higher cover limit is always advisable if you have loans, debts, bills or any other financial obligations that you want to clear before you depart.
Price of the policy
Although the price of the policy will determine your choice, you should remember that purchasing a good plan can mean less worry while you are healthy. Purchasing a good plan will keep you prepared for emergencies and unpleasant situations. Purchasing a good plan doesn’t necessarily imply that you have to spend $30 a month on insurance; since it is possible to get affordable but good plans for as less as $10 a month.
Comparing plans before hand and choosing the features of a plan wisely along with adjusting the terms of the selected plan to suit your needs can help you get a plan that is best suited for you. Terms of the plan that you may be able to adjust include the cover limit and the waiting period. A longer waiting period implies lower premiums towards the chosen plan but also implies that if you fall ill during this cooling off period then you will be excluded from getting the compensation payout. You will also be given the option to choose a short term plan for 10 years or lesser or a long term plan that can have a term of 20 years. Choose the plan you want carefully, since you will have to choose a premium payment plan accordingly. Most people prefer to purchase levelled premium plans when they opt for long term plans whereas; buyers who prefer short term plans usually agree to pay stepped premiums.
Reading the PDS
Reading the Product Disclosure Statement is a wise thing to do especially if you have purchased a new policy. If you find unacceptable terms in this legal document such as premium loading fees or exclusions that you do not agree to; then you may be eligible to return the policy without any penalty provided that the policy has not come into effect. The policy can only be returned while the waiting period of the chosen plan is active. While some insurers offer a standard waiting period of 14 days, other insurers offer a cooling off period of 30 – 120 days.
Choose a plan
Choose a plan that you need and consider inflation along with other important factors such as lifestyle when you purchase a plan. If you are a smoker then chances are that you will be offered a plan for a higher premium as compared to a non smoker. However; if you quit smoking for 12 months or more after purchasing a plan, you can contact your insurer and inform him of this, since insurers consider people who have quit smoking for a minimum of 1 year as non smokers.