If you have been putting off purchasing life cover because it seems like an overwhelming process or you are not quite sure what you are getting yourself into, we have some handy questions that you can ask your insurer or an agent.
Not only will these questions help you navigate your way to finding the right insurer, but it will also help you asses if the policy is the right one for you. Here are five questions to ask your life insurer when taking out a policy.
What does your policy offer?
It may seem like a straightforward question, but it is crucial to understand what a policy offers. After all, you want it to adequately provide for your loved ones when you are no longer around to do so than to leave them having to face nasty surprises.
An insurer or agent will go through this with you in the initial stages but remember to ask them to send you documents so that you can read through it.
Sometimes we can miss things or hear things incorrectly when speaking to an insurer, don't be afraid to ask them to repeat, explain, or slow down to understand what is being said.
What are the benefits that come with your policy?
You might as well get benefits while signing a long-term commitment with your insurer. Ask them if they have any benefits that are created to protect you while you are still living such as disability protection, terminal illness cover, and accelerated funeral benefits. Not sure what these benefits mean?
A disability protection cover is a benefit that insurers offer to protect you financially should you be unable to work due to a sustained disability. A terminal illness cover is a lump sum that is paid out should you be diagnosed with a terminal illness, which means you only have 12 months or less to live.
Accelerated funeral benefits are usually paid out within 24-48 hours, a benefit that ensures that your loved ones are paid a portion of your life cover to cover funeral expenses.
What are the conditions that come with this policy?
Reading the fine print is something that many people gloss over, but this can either make or break your policy. Not only will you miss out on vital information such as how premiums are paid, what happens if you miss an instalment or premium increases, but it can put a kink in the process of placing a claim. This is where you need to pay careful attention to get a clear understanding of what you are signing yourself up for.
How can I update my policy?
Nothing ever stays the same in our lives, so why should your policy? If you are planning on having children, getting married, or building a retirement plan to future proof your finances then it is essential to ask if you will be able to adapt your policy accordingly to keep up with your life.
What is your Cooling-off-period?
Knowing the cooling-off period is a lifeline to help you decide if you want to sign up with the insurer you applied with. Think of it as a trial where you get the opportunity to test if a product is the right fit for you. At the end of the trial, you can decide whether you want to partner with your insurer long-term or move on.
Depending on the insurer, you will get the premiums that you paid back if you cancel before the end of the cooling-off period. Remember that cancelling your cover means that you no longer have a policy in place and you will have to open a new one to start afresh.