Not all life covers are created equal, so how do you go about finding one that will give you peace of mind and meet your loved one's needs?
It is all in finding the right features and benefits that compliment your current lifestyle, and here is what you need to look out for before you sign your name on the dotted line.
Benefit amount
The benefit amount, also known as the sum insured, is the payout that your beneficiaries will receive once they have placed a claim. When you apply for a life insurance policy you will be taken through an underwriting process which will determine the amount that you will be insured for. It is also possible for you to choose the amount you would want to be insured for, giving you peace of mind knowing that your loved ones will be taken care of once you have passed on.
You can seek free financial advice from a financial advisor who will be able to assess your current lifestyle to help you know if the cover amount you are insured for is adequate for your future financial needs once it is paid out.
Will you be able to afford the premiums?
Having life cover is like a long-term relationship; it needs to start with honesty and be maintained by keeping the promise that each party makes. Life insurers make the promise to pay out the policy amount, but they need you to keep your promise to meet the monthly premiums to keep this promise active.
Keep in mind that premiums will increase each year by a certain percentage that your insurer will disclose to you, which you need to assess if you will be able to afford in the long run. You can apply for an obligation free quote here to see how much you will be paying each month.
Claim process
When it comes to placing a claim during a difficult time of losing a loved one, the last thing anyone wants is a complex process in which they do not know where to claim and how long it will take. Knowing which documents to have beforehand can make the claim process smoother.
For MiWayLife policyholders you can place your claim online here or give us a call to place your claim. Most insurers will process your funeral claims within 24 hours to get the funeral underway, but the life insurance payout can take some time to process due to insurers having to make sure that the policyholder passed away under reasonable circumstances.
Pre-existing medical conditions
Knowing what your insurer covers and doesn't cover is important. It also means carefully reading the list of pre-existing medical conditions that they cover to see if they will cover you if you have any. Remember that the onus is on you to disclose any pre-existing conditions to make sure that you will be covered.
