Life Insurance in Australia

What Is Life Insurance and How Does It Work?

Life insurance is a contract between you and an insurance provider. Under this contract, you pay quotes insurance, and in return, your nominated beneficiaries receive a lump sum or an ongoing income if you pass away or are diagnosed with a terminal illness. The payout from a life insurance Australia can help your family cover immediate and long-term financial needs, such as:

• Paying off the remaining mortgage

• Covering day-to-day living expenses

• Funding your children's education

• Secure your spouse’s retirement

• Managing outstanding debts and other obligations

What Are the Types of Life Insurance in Australia?

Australia offers several types of life insurance products, with each option tailored to meet different financial protection needs:

How Much Life Insurance Do You Need?

The amount of life insurance Australia you need depends on your current financial situation and future obligations. Key considerations include:

• Your current household income and expenses

• Your outstanding mortgage and other debts

• The number of financial dependents you support

• Future education and healthcare costs for your children

• Any existing savings, investments, or superannuation balances

You can use the average Australian family income and the median Australian household income as a guide to estimate a suitable level of cover.

When Should You Buy Life Insurance in Australia?

The decision to take out life insurance is influenced by various life events and financial milestones. It is generally advisable to consider life insurance Australia when:

• You purchase a residential property

• You get married or enter a long-term partnership

• You start a family or have children

• You want to create a legacy for your family

• You take on significant financial responsibilities, such as starting a business

Buying life insurance Australia earlier in life can result in lower life insurance quotes and a wider choice of policies.

How Does Life Insurance Affect Your Home Loan?

Many Australians purchase life insurance plans like term insurance for home loan to ensure that their home loan repayment can be made in full in the event of their untimely death. This approach is often referred to as mortgage protection insurance or mortgage repayment.

What are the Benefits of Mortgage Protection Insurance?

• Ensures the outstanding home loan is cleared

• Protects your family's ability to stay in the home

• Reduces the financial burden on your spouse or dependents

Why Should NRIs in Australia Buy Term Life Insurance from India?

Non-Resident Indians (NRIs) living in Australia have the option to purchase term insurance for NRI from India. This option is particularly beneficial for those who have financial dependents residing in India.

What are the Benefits of Buying Term Insurance for NRIs from India?

• The term life insurance quotes of Indian insurers are much more affordable than international term plans.

• Premiums paid via NRE (non-residential external) bank accounts can claim term insurance GST waiver of 18% as per the prevailing tax laws.

• Term insurance coverage is applicable world-wide and provides uninterrupted peace of mind.

• You can clear tele/video medicals with term insurance online without any hassle from your current country of residence.

• Get dedicated claim assistance for the family in your absence with Policybazaar term insurance plans.

How to Buy a Term Life Insurance for NRI in Australia from Indian Insurers?

Step 1: Visit the official Policybazaar website.

Step 2: Navigate to the NRI Term Insurance section.

Step 3: Compare term life insurance for NRIs offered by various insurers.

Step 4: Pay the applicable term life insurance quotes and receive your policy documents via email.

Final Thoughts

Life insurance Australia is a fundamental component of a comprehensive financial strategy. It helps ensure that your loved ones are not left with financial hardship in your absence. Whether you are a permanent resident, citizen, or an NRI living in Australia, selecting a life insurance plan that aligns with your financial goals is essential.

For NRIs, term life insurance Australia offered through Policybazaar presents a cost-effective and flexible solution with global applicability. These plans allow you to protect your family in India while residing abroad, giving you and your loved ones peace of mind for the future.

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