At some stage, we all need a life insurance policy in place that can grow with us, but how do you know which one will be the right one for you and how do you ensure it comes with suitable features to match?
Here are four tips for women who are looking to take out life insurance.
Know how much life cover you will need
The first thing you will notice is that life insurers are offering various cover amounts that range from R500,000 to R5 million. Whilst an insurer may cap their cover amount at R5 million, it does not necessarily mean you will only be able to take cover for this amount. Life insurers will take you through an underwriting process to determine how much life cover you can be covered for. This process is affected by your age, gender, health, occupation and the type of lifestyle you have. You can use our life insurance calculator to get an estimate of how much life cover will be enough for you before getting a quote.
Will you be able to afford the premiums?
Having a life insurance policy in place is important, but the last thing you want to do is find yourself not being able to pay the monthly premiums at a later stage. You are automatically protected by the Treating Customers Fairly (TCF) Act, that requires that an insurer gives you a policy that you can afford. Because of this, most insurers will disclose if there will be a premium increase each year to help you assess if you can afford it. However, if this has not been the case, make sure to ask your insurer.
Are you planning on having dependants or already have dependants?
Before we buy anything, we always like to look at the features that come with it to see what are things that can be beneficial to us. The same goes for life insurance. This is more important if you have dependants or plan on having dependants one day. Having a cover that comes with additional benefits such as terminal illness cover and a built-in funeral policy ensures that all your bases are covered. MiWayLife offers you this option with the additional benefit of adding extended family members when you take out a funeral cover with us. Always remember to carefully assess the features of your life cover to see if it is suitable for your situation.
You are with a reputable insurer
There are many insurers out there, but not all will have your best interests at heart. With the rise in fraudulent companies, it is crucial to check that the insurer you are thinking of joining is a registered FSP and has a good track record of paying out claims. Understanding the claims process can also help you avoid disappointment. Make sure to contact your insurer should there be anything that you do not understand.
The golden rule is to take out life cover while you are still young and healthy, making your premiums more affordable. You can also improve your health by practising a healthy lifestyle to reduce your premiums further.