Having life insurance is the first step, but finding a cover that is the right fit for you and your loved ones? It’s priceless.
Unless you are someone who works within the finance or insurance industry to understand the ins and outs of how this works, things can get confusing. We are here to help you navigate your way with ease around life insurance products by breaking down 8 life insurance tips that will help you find the right cover for you.
Purchase life insurance when you are young and healthy
Here is one thing that you need to know; the older you get the more susceptible you 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.
Life cover that comes with benefits
What makes a policy is the benefits that come with it. The devil is in the detail, which means you will need to carefully read or ask about the benefits that come with your cover. 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, which is crucial.
Extended family member cover
South African families are diverse and at times large. Many of us have funeral policies in place, but what if you could get a 2-in-1 policy that allows you to get life cover, and cover for up to eight family members under the built in funeral benefit? At MiWayLife, we cover you for up to eight family members to give you peace of mind.
Premiums
Life insurance is a two-way street; you will have to pay your premiums to keep it active and your insurer must keep their word by paying out the sum insured amount to your beneficiaries. What you need to consider is if you will be able to keep up with the premiums that will increase by a certain percentage each year? Your insurer will inform you on what percentage your premiums will increase by which needs to be factored into your budget so that you won’t default on your payments.
Change your lifestyle
One of the factors that influences the premiums that you end up paying is your lifestyle. The healthier you are the lower your premiums become. There are some insurers who are willing to cut back on the premiums you pay if you change your lifestyle habits such as quitting smoking and excessive drinking, sticking to your doctors prescribed medication, or losing weight. You can always ask your insurer to review your premiums once you have made these changes.
Review your policy
A lot can happen in a year, which also makes it important to review your policy every year. Maybe a listed beneficiary has passed on or you have had a baby and you would like to list as a beneficiary. Whatever the reason may be, always remember to check if your policy is up to date and that it covers those who matter to you.
Seek financial advice
Your financial situation differs from the next person, so why settle for something that is the same as the next person? There are free financial services that you can make use of that will advise you on what life cover will be suitable to your finances without straining you.
Be careful who you take out life insurance with
Remember to always choose a reputable financial or life insurance company that will take good care of something as important as your life. It is crucial to do research before you sign anything to protect you, your family and your hard-earned money.
