Navigating your way to the right financial decision that can benefit you and your loved ones is something that needs to be done carefully. However, there are ways which you can find affordable life cover. Here are three tools to get you started.
What do your current financial responsibilities look like?
A frequently asked question is how much life cover is enough cover? An important question that will let you know if whatever cover you are being offered is suitable for your situation. A starting point can be looking at your current financial responsibilities. This could be:
Daily living expenses
Educational costs
Debt
Medical bills
Supporting family members
Purchasing property
Paying off the bond
Paying off a loan
Some of these things may be future expenses you could be looking at. Having an estimate of how much it will cost you to sustain your current life multiplied by 12 months can give you an idea of just how much life cover you will need per annum. After all, life insurance is about making sure that you and your loved ones can continue with life as they knew it without any financial interruption.
Start using an online calculator
A free tool that is easily available for you to assess how much cover you will need is a life insurance calculator. Using this can give you a quick and easy estimate of just how much you will need. You can choose to adjust the cover amount when you apply with an insurer. However, keep in mind that this could increase your premiums.
Therefore, consider how the yearly increase that could be applied by your insurer will affect your ability to pay for your cover. It is easy to get swept away by the affordability of something but overlooking features can end up costing you.
Features to look out for
The price of a policy can put a smile on your face but be careful not to skimp on the features that can either make or break the deal. Features are the bells and whistles, the benefits that will give you peace of mind knowing that you and your loved ones are financially protected.
Make sure to check that your policy has features that are aligned with your needs such as funeral benefits, terminal illness cover, and a good track record when it comes to paying claims. Keep in mind that the claims process is affected by the exclusions that are listed in your policy which will determine if an insurer processes or denies a claim.
