We all know how important it is to have a life insurance policy that will protect our financial future, but what you may not know is that there are a few things to consider before getting a quote.
Here are five things to consider before getting a life quote.
Do you know how much cover you will need?
The big question that can leave some scratching their heads is how much life cover they will need. Take it one step further by asking yourself how much life cover is enough cover? While you can have more than one life insurance policy, knowing if your insurer will adequately cover your needs is important. We have a handy life insurance calculator that can help you estimate how much cover you will need. You can also find out what insurers look at to give you the cover amount you require.
Do you want to cover your dependants?
Life insurance quotes differ from insurer to insurer. The same goes for the cover amount that they will be able to cover you for. One of the important things to consider is looking at what your insurers cover has to offer. Does the life insurance cover come with benefits that can cover you and your dependents? Does it come with a built-in funeral plan or will you have to take out a separate funeral policy? This can help your loved ones avoid disappointment and stress when it comes to placing a claim. Remember to ask your insurer to clarify wherever you do not understand before putting your name on the dotted line.
Will you be able to update your policy?
Affordability shouldn't only be the main concern but looking at the fine print of your policy can give you an insight into what you can and cannot do. It will also help you understand what your insurer will not cover. Having a flexible life insurance policy is a benefit that can come in handy when it comes to having something that can grow with you. It also gives you the option of updating and removing beneficiaries to keep it updated at no extra cost.
Can you afford the premium?
Being able to walk away with a great deal is something that many people look for when taking out life insurance. But try to avoid being lost in the price. Another thing to check before agreeing to a policy is the premium increase that comes with it. While it may be affordable at the time you take the policy out, it could increase in the coming years which can make it hard for you to keep it active. The last thing you will want is having to cancel your policy after all these years of paying for it and being left without cover.
Are the features suitable for you?
Not all covers are created equally. Carefully check the benefits that come with it. Weigh up whether it will be beneficial to you and your dependents when you need it the most. Things such as terminal illness cover can be beneficial for you when you are still living, which is why it is important to ask your insurer if their life cover comes with this feature.