What am I covered for?

Knowing what a policy offers is a great way to assess if a life insurance policy is suitable for you and your loved ones. No one wants any nasty surprises, especially when your loved ones will need it the most. An insurer or agent will take you through what the cover offers when you are going through the underwriting process. Don't be afraid to ask your insurer or agent to explain, repeat or slow down while explaining what you are covered for. Remember to carefully read through this once your contract has been sent to see if everything is up to scratch. 

What will I not be covered for?

Also known as exclusions, an insurer will take you through what you are not covered for. Exclusions can differ slightly from insurer to insurer, which is why it is crucial to know what you will not be covered for. Some of the general exclusions that insurers have are: 

• Travelling to high-risk countries that are listed on your policy such as Afghanistan, Iraq, Burundi, Syria and so forth.
• Participating in dangerous hobbies or activities such as cliff diving, unaccompanied scuba diving, solo climbing, mountaineering, motorised racing or speed contests.
• Participating in riots, insurrection, civil commotion, or an act of terrorism.
• Commit or attempts to commit a crime
• Deliberately inflict an injury on yourself
• Drugs or medicine that has not been prescribed to you by a doctor or drinking and driving
• Deaths caused by suicide will not be paid within 24 months from the cover start date.

How much are the monthly premiums?

Knowing if you will be able to afford a policy over time is crucial. The last thing that you want is having to cancel your cover and start over again because of high premiums. Remember to ask if there will be a yearly increase on your premiums and what percentage this will be to factor this into your budget.

What factors can impact the outcome of my premiums?

Not all premiums are created equal. Some things can influence what you end up paying such as your age, gender, lifestyle, and health. While you may not have control over other factors, you can have affordable premiums by taking out life cover when you are younger and lead a healthy lifestyle that doesn't put your health at risk.

What is the process of adding beneficiaries?

Deciding who will receive your life insurance payout is also another crucial step when it comes to life insurance. Ask your insurer what the process is on adding and removing beneficiaries to keep your policy up to date. 

How does it cover me while I am still living?

Did you know that there are benefits from life cover that you can use while you are still living? You can use your life cover to boost your chances of buying a home or being able to use it to cover the cost of a terminal illness. 

What is the cooling-off period?

A cooling-off period is a window period that is designed to protect you. What this means is that you will be given an allocated amount of time to read and understand what you are agreeing to, with the outcome that should you not be pleased with the life insurance policy that you have taken out, you can cancel it.