What does it mean to be underinsured?

Not having enough insurance, AKA underinsured, can leave you financially exposed. It can cause a financial strain on both you and your loved ones when you need it the most. Choosing the first life policy you come across can make or break your financial plans, which is why it is important to check its features to see if it will be the right fit for you. 

What does it mean to be over insured?

You can have more than one life cover in place but avoid over insuring yourself in the process. To be over insured means purchasing coverage that exceeds the value of the thing or person you are insuring. It can also lead to placing a financial strain on your finances if you have not calculated if you can afford the premiums as they increase each year for each policy. Furthermore, the admin that comes with tracking and keeping each policy up to date can be overwhelming.

How can you avoid being over insured?

The good news is that you are taking the first step towards protecting your future. Finding the right fit can start with knowing how much cover is enough for you. A general rule of thumb is to take the current expenses of your lifestyle and multiply your income by 10 or 17. You can also look at the needs you and your loved ones have to assess if it will be enough to cover you. Our online life insurance calculator can also give you an estimate to cover your needs. 

Finding the right fit

One of the features that come with life insurance policies is that it adapts with you as you grow. You can always come back to update your policy, increase or decrease the cover amount to something that matches your needs. Looking at your needs, your current income, and combining the use of an online calculator can give you a clearer picture of what's best for you and your family. You can also request a quote online to have an agent walk you through what you can be covered for and what you will not be covered for.