If you’re looking for a cheap life insurance policy, but you’re worried that it won’t offer sufficient protection, be sure to review the built-in benefits the insurer offers and which low-cost optional extras you can add to enhance your policy.
Insurance companies in Australia generally offer a number of life insurance policy options designed to help you customise your policy to suit your needs. Each company offers different additional options, so be sure to carefully review your product disclosure statement (PDS).
Types of Options
There are generally 3 types of life insurance policy options:
Additional Policy Options
Additional policy options are designed to enhance your policy. There is no obligation to include these in your policy, but if you want them, you’ll have to pay for them.
Premium structuring options
There are a number of premium structuring options available to you, including level, stepped and hybrid premiums.
Built-in benefit options
Depending on the insurer, you might have access to several built-in benefits that you can use free of charge.
Additional, Paid-for Options
Premium structuring options
There are several available options when choosing a premium structure, including: