What You Need To Check Before Purchasing Life Insurance

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.

Buy Now Pay Later – Is This Service Right For You?

If you’re someone who often finds it difficult to make large lump sum payments for goods or services, you may want to consider looking into “Buy Now Pay Later” services.

 

Buy now pay later essentially means that, rather than paying in a full lump sum payment for a product or services rendered, there may be an option to pay through instalments of a certain amount over a set period to make the sum of the full amount in total. This method should allow you to pay in full for the product or service without overly straining your finances – you pay back what you can, as agreed upon when you begin the buy now pay later service.

 

Some popular buy now pay later services include Afterpay, Zip Pay, Brightepay, and some credit card networks such as  Mastercard and Visa, can offer buy now pay later arrangements.

 

Though it can be a convenient, immediate solution, it may be challenging to juggle the necessary repayments with other financial commitments. It’s not always the most appropriate method for people, and you should bear in mind your situation and ability in paying back the amounts. 

 

Before you sign up, keep in mind: 

  • It becomes easier to overspend with buy now pay later services, so know your limits on what you can and can’t afford.
  • You will be charged fees and costs to use the service, which can add up to a princely sum in and of itself.
  • Keeping track of your payments can be tricky if you’ve signed up for multiple services.
  • It could affect your loan applications for a car or mortgage as lenders consider buy now pay later spending just as much as your credit score.
  • Late repayments can appear on your credit report, which affects your ability to borrow money in the future.
  • Layby can be a cheaper alternative to buy now pay later, with no account-keeping or late fees to consider

 

If you are someone who could make use of BNPL services, you may wish to:

  • Ensure that when using the BNPL service, you stick to a set limit on what you spend so that you can comfortably pay it back later. 
  • Aim only to have one BNPL account at a time to manage payments through, rather than confuse yourself with multiple payments across different providers.
  • Always budget for bills, loan payments and BNPL payments, and 
  • Rather than use your credit card for payments to your BNPL account, consider linking to your debit account instead.


If you would like assistance in planning your financial future, help in managing your budget or some friendly advice, see us for a chat about what we can do for you.

Buy Now Pay Later – Is This Service Right For You?

If you’re someone who often finds it difficult to make large lump sum payments for goods or services, you may want to consider looking into “Buy Now Pay Later” services.

Buy now pay later essentially means that, rather than paying in a full lump sum payment for a product or services rendered, there may be an option to pay through instalments of a certain amount over a set period to make the sum of the full amount in total. This method should allow you to pay in full for the product or service without overly straining your finances – you pay back what you can, as agreed upon when you begin the buy now pay later service.

Some popular buy now pay later services include Afterpay, Zip Pay, Brightepay, and some credit card networks such as  Mastercard and Visa, can offer buy now pay later arrangements.

Though it can be a convenient, immediate solution, it may be challenging to juggle the necessary repayments with other financial commitments. It’s not always the most appropriate method for people, and you should bear in mind your situation and ability in paying back the amounts.

Before you sign up, keep in mind:

It becomes easier to overspend with buy now pay later services, so know your limits on what you can and can’t afford.
You will be charged fees and costs to use the service, which can add up to a princely sum in and of itself.
Keeping track of your payments can be tricky if you’ve signed up for multiple services.
It could affect your loan applications for a car or mortgage as lenders consider buy now pay later spending just as much as your credit score.
Late repayments can appear on your credit report, which affects your ability to borrow money in the future.
Layby can be a cheaper alternative to buy now pay later, with no account-keeping or late fees to consider

If you are someone who could make use of BNPL services, you may wish to:

Ensure that when using the BNPL service, you stick to a set limit on what you spend so that you can comfortably pay it back later.
Aim only to have one BNPL account at a time to manage payments through, rather than confuse yourself with multiple payments across different providers.
Always budget for bills, loan payments and BNPL payments, and
Rather than use your credit card for payments to your BNPL account, consider linking to your debit account instead.

If you would like assistance in planning your financial future, help in managing your budget or some friendly advice, see us for a chat about what we can do for you.