If you are in the process of taking out life cover that will financially protect you and your family, the last thing you want is to choose something that comes with features that don't align with what you need. How do you go about choosing the best cover that will be affordable to you? Here are five tips to get you started.
Know how much cover is enough cover
It's crucial to know how much cover will be enough to sustain your loved one's lifestyle, even when you have passed on. Using a life insurance calculator can help gauge how much life cover will be enough for you. You can also do this by looking at your current expenses to understand how much will be needed each year. Life insurance keeps up with the inflation rate, therefore, you can rest assured knowing that you are covered.
Choose a reputable insurer
Being in a rush to take out a cover without checking if it's with a reputable insurer can leave you exposed to being scammed or having your loved ones being forced to jump through hoops when it comes to the claim stage. All reputable insurers should be a registered FSP and have an existing digital footprint through a website, social media platform, and reviews.
Finding affordable cover
The affordability of something is relative. However, getting the best value for your money is something that we all want. One of the golden rules when it comes to taking out a policy is having cover while you are still young and healthy.
The reason for this is that the older we get the more susceptible we are to contracting illnesses and injuries that can compromise your life. Life insurers use the underwriting process, read our blog posts that explains this here, to make the process fair. It will also determine what premiums you will end up paying. The older you are the higher the premiums become.
The devil is in the detail
Before putting your name on the dotted line, always make sure that you have read through the document or asked the right questions about your cover to see if it's for you. Having a life insurance policy that comes with a built-in funeral benefit, covers you for terminal illnesses, and allows you to include other family members under one premium, is crucial.
The bells and whistles
What you end up paying for are the features that come with a policy that promises you a financial safety net. Therefore, it's crucial to check that the policy comes with features and benefits that can hold up when your family needs them the most. Carefully go through these to see if these match up to what you might need in the future. If you do not understand a certain benefit, make sure to ask your insurer to explain.
Always remember to check if your policy is up to date and that it covers those who matter to you.