Knowing how much life insurance you need can let you avoid purchasing something that won’t adequately cover them. Here is what you need to know.
Mastering the art of juggling your finances is something that we must go through on a monthly, if not a daily basis. Having a life insurance policy can let you rest assured knowing that your loved ones are financially covered in the future. Knowing how much life insurance you need can let you avoid purchasing something that won’t adequately cover them. Here is what you need to know.
It should cover your daily expenses
Taking out a policy that will be valuable to you and your loved ones boils down to getting something that is tailor-made for your needs. Looking at your current expenses along with future plans that you may have such as paying off your debt, buying groceries, saving for tertiary education, purchasing a home, or introducing a new member to the family needs are things you can consider.
Can you afford it
Most insurers offer cover that starts at R1.5 million and can go up to R5 million for as little as R149 a month, which is the equivalent to the price of a box of pizza. However, checking the premiums for your policy along with the increase that comes with it per annum or every 5 years is important. This can help you budget accurately for it and avoid cancelling it because of its affordability. Insurers base their premiums on your age, health, and lifestyle to determine what premiums you will be paying. Therefore, it is equally important to get life insurance while you are still young.
Does it come with flexible features?
One of the common mistakes people make when taking out a life insurance policy is to look at the price. This can blindside you to the most important aspect that will come in handy, the features. Whether you are planning on getting married or covering extended family members under one policy, it is essential to check that your life cover can do this for you. This can help you avoid taking out multiple policies with multiple premiums. Always keep in mind to compare your options and read the terms and conditions that come with it before settling for one.
Speaking to an agent or a financial advisor can help you on your path to finding an insurance policy that fits your budget.