Direct life insurance is a type of life insurance policy that you can purchase on your own without using a third-party agent or broker to provide cover if you pass away or become terminally ill. You can take out this type of cover for yourself or create a joint policy with your partner. Direct life insurance is different from group life insurance, which is a policy that is purchased by an organisation (usually an employer or superannuation fund) on your behalf.
Many of us already have group life insurance through our superannuation fund, which is a great perk to take advantage of while we are still working. However, it’s important to know that group life insurance may not provide as much cover as a direct policy could and that a change in your work circumstances could impact your cover. If you’re making extensive plans for retirement and want to ensure that you and your family are financially covered into your later years in case you pass away or become terminally ill, then it might be worth looking into direct life insurance.
Direct term life insurance
A term life insurance policy covers you for a set period of time, such as 10 or 20 years, or until you reach a certain age. Some term life insurance policies are easy to apply for as you don’t need to go through any medicals or blood tests to get approved, just answer the health questions provided, which can make this a great option for those of us who are generally healthy and want to get covered quickly. Seniors Term Life Insurance has a high entry-age limit too, giving you the option to take out cover later in life when your situation and need may have changed.
Do I need direct life insurance?
If you already have life insurance through your super, it’s worth checking how much you’re covered for and whether this is enough to meet your needs and how your working status may affect this. Unfortunately, many of us don’t review our insurance coverage as often as we should, which could lead to an underinsurance gap. That’s why it might be worth considering direct life insurance.
The main benefit of purchasing life insurance directly is choice and variety; instead of being locked into a group policy chosen by your employer or superannuation fund, you can find a flexible policy that works for your individual needs.
Is direct life insurance suitable for older Australians?
Direct life insurance can offer you control and variety as you can tailor your policy to suit your individual needs. This is a great option for those of us who are still facing financial responsibilities as we get older and want to make sure our loved ones won’t be held back if we were no longer around to provide for them.