If something unexpected or untoward happens to you or your loved ones, life insurance is financial protection that you don’t want to skimp on. It’s crucial to find the right insurance to suit your needs, as the cost of life insurance can become a costly amount in your budget.

Different life insurance products are designed to protect you and your loved ones from various events that can occur. Some of the products that may be covered under life insurance (depending on the provider) include:

• Life Cover pays out a lump sum if you die.
• Total and permanent disability (TPD) insurance pays a lump sum to help you with rehabilitation and living costs.
• Trauma insurance covers you if you’re diagnosed with a major illness.
• Income protection insurance pays some of your income if you can’t work due to illness or injury.

Before making a purchase, you should read the life insurance provider’s product disclosure statement (which legally must be provided to you before purchase). Check the product disclosure statement for:

• What’s covered and excluded under the policy
• What information you will need to give to an insurer
• Information on premiums and how they change over time
• Waiting periods before you make a claim
• How to make a claim
• How to make a complaint about the claims process or decision

As it is a significant financial decision, shop around before making the final decision to ensure that you are getting the product that best suits your needs.

You should also check whether or not you already have life insurance through your super to make sure that you are not paying for your insurance twice. If you’re not sure about whether or not your super provider already covers your life insurance, it’s best to speak with them directly to be certain.

It is also important to know that only licensed financial advisers can give you advice about what life insurance you should hold.