When is it the right time to review your policy?

Choosing the 'set and forget' method when it comes to your policy could end up costing you. Not only does it increase the chances of you not having an updated list of beneficiaries, but it could also cause you to miss out on the opportunity to reduce your premium.

Your health plays a significant role on what you are quoted when you first apply for a life cover policy. A smoker is more likely to pay a slightly increased premium compared to a non-smoker. The same goes for someone who has an array of medical conditions that can place their life at risk compared to someone of the same age who is healthy.

Reviewing your policy whenever your health status changes, such as when you quit smoking or change occupations is usually a good time. Adding and removing beneficiaries can also ensure that your policy is kept up to date. A golden rule is to review your policy whenever any major changes that happen in your life such as having a child, getting married, losing a loved one, estate planning or a change in your health status.

What can you review for better premiums?

Premiums differ from insurer to insurer for a range of reasons. Furthermore, the underwriting process also plays a part in the cover you are quoted. However, there are some instances where you can review your policy and receive a reduced premium by your insurer. 

Factors such as your BMI, being diabetic or smoking can affect your premium. However, being able to make a few lifestyle changes and healthier choices that improve your health can lead to your premiums being reduce. Checking with your insurer to see what can help reduce your premiums can give you better insight into what changes you need to make to improve your premiums and your life. 

Features to keep an eye out

Not all policies are created equally. Therefore, knowing what features to look out for when taking out a policy can let you know if it will be the perfect for your needs. It can also help you avoid any nasty surprises when it comes to placing a claim. Check for features such as:

• Funeral cover for extended family members and the amount that they are covered for. This is usually a maximum of R50,000 for people that are 18 years and older.
• Terminal illness cover and the flexibility that comes with it. There are insurers that allow you to take out 50%- 100% of the amount to help deal with expenses.
• Inclusions and exclusions are something that should be read carefully. This is your guideline on whether you qualify and whether you will be covered when it is time to make a claim.