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What is Life Insurance and How Does It Work

When you move out of your parents’ house and become financially independent, buying insurance is often seen as the ‘grown-up’ thing to do. You know it’ important and that you’re supposed to have it, but you’re not entirely sure why or what’s the benefit.
Fact Checked

Updated: 19 May 2024

Life insurance is a way to protect your loved ones from financial strain should you die or be diagnosed with a terminal illness. However, other insurance types fall under this umbrella term, and these might protect you should you suffer an illness or injury, depending on the type you choose — for example, TPD insurance, Critical Illness cover, and Income Protection insurance.

Use the below life insurance guide to help you understand what life insurance is, how it works, whether it will benefit you and how to buy a policy suited to your requirements.

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