Life Insurance
What Does an Obligation-Free Quote Mean?
What Does an Obligation-Free Quote Mean?
29 Sep 2020

What does it mean to get an obligation-free quote? Often it is the major words that are used by insurers that can leave people confused and intimidated by financial products. However, our jargon busters can help demystify these words to help you make a sound decision. Here is what an obligation-free quote means.

Obligation-free quote meaning

Having life cover in place is one of the most important investments anyone can make. After all, it is a cover that will create a financial safety net for you and your loved ones when you need it the most.

An insurer will take you through the underwriting process where they will ask you questions ranging from your health, occupation, gender and more to tailor-make a policy that will be suitable and affordable for you.

At the end of this process, you will be given a quoted amount. This monetary figure is what a monthly premium would look like for a life insurance policy for you personally, and the quote does not require or put you under any pressure to agree with. You have the option of choosing to either agree with the quoted amount that you will be paying as a monthly premium and accept a policy or you can choose to walk away.

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Life insurance calculators vs obligation-free quotes

To make the process easier for you, life insurers have included a nifty tool called the life insurance calculator tool which is ideal for people who are not sure how much life insurance they will need. You can try our calculator to find out. But what is the difference between the obligation-free quote and a life insurance calculator? 

A life insurance calculator gives you an estimate which is subject to change when you contact an insurer to take out a policy. An obligation-free quote is the actual premium you will have to pay, but have no requirement to follow through on. It is important to keep in mind that insurers differ. Therefore, one insurer may quote you a certain premium for a particular cover amount while another could quote you something different. 

Making the final decision

Not all life covers are created the same, but what should you keep your eyes open for to make the right decision? You can read from our other blog post on what features to look out for before placing your name on the dotted line. Knowing what questions to ask when speaking to an insurer or an agent can also make it easier to tell if a policy will be the right one for you. Should you still feel like the cover you have taken out is not the right fit for you, you have a cooling off period of 30 days to cancel it.

Need more information on MiWayLife? Read about our life insurance product, or get a life insurance quote in 30 seconds. Alternatively, call us on 0860 64 54 33 .
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Terms and conditions apply. Eligibility, cover and benefits are determined on individual risk profile. MiWayLife is an authorised FSP (No. 45741) and its product offering is underwritten by Sanlam Life Insurance Limited, a registered long-term insurer. MiWayLife is a division of Sanlam Life Insurance Limited - Reg No. 1998/021121/06