Choosing the right life cover for yourself shouldn't be a nightmare. While most people will look at the cost, there are other factors that you need to consider that go beyond this. Here are five tips to help you find the right fit for you.
How much insurance you will need?
You may have considered taking out life cover for some time, but how much is enough? It may seem like an overwhelming question, but thankfully, life insurers have moved towards introducing tools that can help you estimate how much life cover will be enough for you. You can make use of our life insurance calculator. Calculate how much you will need to take care of your financial expenses such as what you are currently spending on your car, home, entertainment, groceries and the paying off debt to see how much you need.
Features to look out for
Having life cover is the first step. Knowing what features to look out for can make the process easier, helping you find a tailor-made policy that comes with all the bells and whistles. Things to keep an eye out for are:
What does it cover
Knowing what you are and not covered for is usually discussed with you by a call centre agent, but it also helps to refer to the documents that are sent to you once you have signed up for a life insurance policy. Check if you are covered for:
Finding a policy that is affordable for you is crucial. Which is why it is important to take out life cover while you are young, and the premiums are low. Check if you will be able to afford the monthly premiums along with the yearly increase that comes with it. The last thing anyone wants is having to close such an important policy to start all over again.
Loadings and exclusions
Carefully read through the terms and conditions that come with a policy to see if it will be suitable for you. Exclusions can be added by all insurers onto their life insurance policies to protect themselves from high-risk individuals. These are events or occurrences that an insurer will not cover due to the high level of risk on your life that it poses. This can affect you when it comes to placing a claim.
Loadings on the other hand can affect your premiums. An insurer will ask you a range of questions regarding your age, health, lifestyle, and occupation which is also known as the underwriting process. These questions help give insurers insight into the chances of you claiming in the future. However, this can be removed or reduced should the cause of the loading be improved. For example, if you attract a loading because you are a smoker and then quit smoking or you have been cleared for cancer.
Ease of process
Doing something important with ease is crucial. The last thing you want is to have your loved ones stress when it is time to place a claim. Check to see what is required in advance to make a claim and where you can submit it. Remember to inform a trusted person or your loved ones about your policy to help make the claim process easier for them.
A reputable insurer
Many scammers are looking to make an opportunity out of vulnerable people. The same goes for fake insurance companies that could scam you out of your hard-earned money. Make sure to check that the insurance company exists and has a reputable track record of paying out claims.