Life insurance is a financial safety net that we all need, but how much life insurance is enough? Knowing what questions and features to look out for when taking out something that will protect you and your loved ones is crucial. Here is what you need to know.
How much does life insurance cost?
The cost of life insurance is affected by various factors such as your age, health, gender, and lifestyle choices such as whether you smoke or not. Smokers or people with existing medical conditions that are likely to put their life at risk are more likely to pay a slightly higher premium compared to someone who is a non-smoker and has no existing medical conditions.
The underwriting process is where all of these factors are assessed to ensure that you end up with a policy that will adequately cover your needs. It's crucial to take out life cover while you are young and healthy, as it is designed to grow with you.
Can a life insurance calculator help?
Maybe you’ve never really thought about life insurance, assuming that it will cost you a lot of money to make sure your family are covered in the event of your death. Done properly though, life insurance can be an affordable monthly cost which gives you peace of mind.
Using tools such as the life insurance calculator can help you estimate how much life insurance you will need to be adequately covered. Knowing how much your premiums could cost you will make it easier for you to factor in the costs into your budget so that you never default on a payment for something as important as life cover. Keep in mind that should you default on your premiums your policy could be closed, meaning that you will have to start a new policy again.
At MiWayLife, we let you choose how much cover you want, and we include funeral cover for you and your extended family within your policy. That way, you get one combined premium at an affordable rate. R500 000 cover starts from just R149* per month, or R5 per day. Get a quote by clicking here and leaving your details.
And if you want to find out more about how to keep your premiums as low as possible, you can always read our top tips on how to lower the cost of your life insurance.
How can I make my life insurance premiums affordable?
When taking out a policy, always ask how much you will be paying and what percentage your premiums increase by each year. Ask your insurer if there is a way to decrease your premiums to help you save. For example, quitting smoking and switching to a healthier lifestyle that helps you maintain a healthy BMI can help reduce your premiums significantly.
What else should I consider?
The same way you would never buy a car without checking out its features and history is the same way you should go about getting life cover. Many people often get caught up in pricing, failing to assess the features that come with a policy. Knowing what features to look out for and how they will be suitable for you and your loved ones is crucial.