Nine big life insurance myths dismantled


The following is not personal financial advice, but it contains useful information that many people should think about.

Before examining the nine myths that surround life insuranceBe aware of one key truth: Fully underwritten life insurance can bring an extra degree of financial security and peace of mind to your life.

Myth 1: Fewer medical questions mean faster and better coverage

Several directly available life insurance coverages do not pose a lot of health questions when you purchase.

Often these have a higher number and / or broader pre-existing condition clauses which may result in a greater likelihood that your application will be delayed or even denied.

It can be easy to buy coverage because it’s quick and / or cheap, but that doesn’t mean it’s the best life insurance for your particular situation.

Myth 2: I’m single, so I don’t need life insurance

Reality: Even if you don’t have any dependents or a partner, there can still be debts owing and funeral costs to cover if you die.

For example, the average basic cremation in Australia costs over $ 4,000, with burials costing much more.

If you don’t have a lot of debt, or a partner or children to think about, then your life insurance may cost you less than you think because you may decide you don’t need a high level of coverage.

Many families make the mistake of not thinking about purchasing coverage for their primary caregiver. Photo: Getty

Myth 3: Life insurance from my pension fund is enough

Reality: The life insurance offered by many pension funds may not adequately cover your life insurance Needs.

Research shows that the median default coverage of super only meets about half of the basic needs of households without children.

Myth 4: Life insurance is expensive

Reality: The cost of life insurance may surprise you – it may be cheaper than you think. Policies vary and premiums depend on your age, health, and lifestyle.

A non-smoker in their 30s can expect to pay less than $ 1 a day for full coverage.

It can be money well spent – life insurance could help protect your family if you were to die.

Myth 5: Fully underwritten and partially underwritten coverages are the same

Fully subscribed = more certainty. One of the main points of confusion can be around the difference between an “underwritten” coverage, which is priced in advance, and products that are not fully subscribed (“partially subscribed”), where the valuation is made at the time of the claim when your family may be going through a difficult time.

With fully underwritten coverage, the insurer asks a number of health, occupation, and lifestyle questions in advance, and sometimes requires medical tests and details of your medical record.

Myth 6: only breadwinners need life insurance

Reality: While it is important for the primary breadwinner to seriously consider life insurance, many families make the mistake of not thinking about purchasing insurance for their primary caregiver.

Stay-at-home moms and dads play an important role which, while unpaid, may need to be replaced “in kind”. The costs of childcare, cleaning, housekeeping and housekeeping can be significant.

Myth 7: I won’t need life insurance until I’m older

Reality: Many people make the mistake of delaying coverage until they are older.

But life insurance premiums are calculated based on a number of factors, including your age and health, which are assessed before your coverage begins, so it makes sense to apply while you are are young and in good health.

Myth 8: My health disqualifies me from life insurance

Reality: A medical diagnosis does not automatically mean that you will no longer be eligible for life insurance.

You must disclose your medical condition during the application process, but that does not necessarily mean that coverage will not be provided.

In some cases, coverage will be provided with an exclusion relating to your specific condition.

Premiums may be slightly higher to reflect your increased risk levels, but if you take positive steps to manage your condition, you can keep additional premiums to a minimum.

Myth 9: I can file my life insurance policy and forget it

Reality: It is important that you keep your life insurance policy up to date and consider whether you should adjust your coverage levels for important life events.

Also, with NobleOak’s life insurance , with certain major life events – marriage, birth of a newborn, increase in your mortgage or adoption of a child – you can request an increase in your Death Guarantee without further medical underwriting (subject to conditions).

Find out more about NobleOak life insurance products or get a life insurance quote, call NobleOak on 1300 041 494. Mention “The New Daily” to receive your special offer.

Important information: NobleOak Life Limited ABN 85 087 648 708 AFSL 247302 is the issuer of NobleOak life insurance products. Please read the PDS and TDG available on the website at for more information and product conditions. This article is just general information – it doesn’t take into account your goals, financial situation, or needs. The NobleOak team can discuss NobleOak products but do not provide personal advice.


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