Do you think there might be a downside to having life insurance? Let’s take a look and see if it’s the right type of cover for you.
Life insurance is can be a very valuable financial tool to help you protect the people you love, even if you’re not around to take care of them yourself. As an example, if you have a life insurance policy with MiWayLife, it will pay a lump sum cover amount to your nominated beneficiaries in the event of your passing due to illness or accident. This cover amount will grow by 5% each year, to help you keep up with inflation.
Still, all financial products have their pros and cons, so let’s taking a look at a few of the disadvantages of life insurance.
Potentially Costly Premiums
One of the biggest disadvantages of life insurance is that it can be costly depending on factors such as your age, health and even your profession. This is why it’s always a good idea to take out life insurance when you’re young and healthy, to avoid having to pay more expensive premiums. You also want a life insurance company that gives you more bang for your buck.
Happily, MiWayLife could potentially give you as much as R500 000 in cover from as little as R164 per month. Better yet, our affordable 4-in-1 policy includes comprehensive life insurance, accelerated funeral cover, an accelerated terminal illness benefit and even funeral cover for your family members.
A Complicated Application Process
Depending on your insurer, taking out life insurance may involve a complex application process that could include having to undergo a medical examination and filling in extensive paperwork. If you’re someone with a long and complex medical history and simple don’t enjoy admin, this might be a challenge.
MiWayLife knows that nobody likes excessive paperwork so we’ve made a point of keeping things simple. We offer a quick and effortless quote and application process that can all be done online and the vast majority of our clients don’t have to undergo medical examination – although this will be case dependent.
Not Everyone Qualifies For A Life Insurance Policy
Many insurers have a cut-off age for those who can quality for a life insurance policy and, more often than not, it’s 65. Again, this is why it’s best to apply for a life insurance policy when you’re young. This is because your insurer will consider you as less of a risk.
Still, you’ll be glad to know that while the life insured should be under 65, your beneficiaries can be of any age – so if you’re in your 40s, there’s nothing stopping you from getting a life insurance policy and using it to protect your elderly parents by making them beneficiaries. With MiWayLife, you can also get funeral cover for your extended family members, including 4 parents that can be of any age.
Your Claim Could Be Denied If You’re Not Informed
All financial products come with exclusions and life insurance is no different. Thus, if you have life cover, but aren’t aware of the exact terms of your policy, you could find yourself in a situation where your claim is denied. For example, most life insurance policies won’t pay out if you pass away due to a drug overdose or while participating in criminal activity. If you’re not abusing illegal drugs or wanting to pull off a risky bank heist, these exclusions won’t be a deterrent to you, but you should still know about all of them so you can act accordingly.
Fortunately, if you’re with MiWayLife, you’ll find our policy is clear and easy to understand. You can get acquainted with all our insurance terms here. Better yet, if there’s still something you don’t understand or would like more clarity on, just get in touch and our friendly call centre agents will be happy to explain things to you.
At the end of the day, life insurance isn’t for everybody, but for those who plan ahead and have family’s to protect, it’s always a great idea.
