Are you thinking of taking out a life insurance policy? Well done! This is a big step towards taking care of your loved ones in all eventualities.
. Here are MiWayLife’s top tips to make sure that the process goes smoothly and help you get the best cover for you and your family.
If possible, take life insurance while you’re still young, healthy and low-risk to the insurance companies. Your premiums will be lower so you can take out sufficient cover, and you never know what could happen. Your family will certainly be grateful that you planned ahead if you pass away unexpectedly at a young age.
To keep your premiums low, consider making some lifestyle changes. Becoming a non-smoker could reduce your monthly premiums dramatically. If you are overweight, then losing weight is likely to benefit your wallet in terms of life insurance premiums too – and it will also decrease your risk for other conditions like diabetes, high blood pressure and heart problems, all of which can skyrocket your premiums or even make you ineligible for life cover in severe cases.
Make sure you choose a policy and cover amount that suits you. There’s no need to take out 10 million rand in cover if you only need 2 million. Not sure how much life insurance you need? We can help you find out here [link to ‘how much life insurance do I need’ blog].
Make sure that you do your research and choose an insurance company and policy which meets your needs. If funeral cover is a big concern, for instance, then make sure you are covered for this. You can check out MiWayLife’s life insurance policy which combines funeral and life cover into one policy, halving your admin and making overall rates cheaper than if you had two separate policies.
It’s crucial to understand why you need life insurance. Is it so that your spouse can carry on living the same lifestyle that they are used if you pass away? Is it to make sure that your house bond and car payments are covered and an unsuspecting family member doesn’t have to pay off your debt? Do you want to leave money to a charity? Is it so that your kids can go to University? Whatever the reason, it’s important to have it clear in your head. This helps you choose the right amount of cover and is an important motivational factor in making sure your premiums are paid so your cover doesn’t lapse.
Life insurance jargon can be confusing, so it’s important to know what you’ve agreed to. Do some research first to find out what common terms like ‘premiums’, ‘exclusions’ and ‘beneficiaries’ mean. If you’re not sure, you can always ask questions during the process of taking out your policy. Remember that the idea is not to mislead you!
