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What Happens When I Increase My Life Cover Amount?
What Happens When I Increase My Life Cover Amount?
25 Sep 2019

Being able to have a life cover that can keep up with the changes in your life and what matters specifically to you is priceless.

Keeping your policy updated is one of the ways to ensure that you and your loved ones are adequately covered.

You can also consider increasing the cover amount to create a larger safety net that can help your loved ones continue the lifestyle that they know once you have passed. Before you increase your cover amount, here are a few things to consider.

Cover amounts differ from insurer to insurer

Using the 'set and forget method' when it comes to your life cover can be a dangerous game to play. Not only can it leave you exposed to not having enough to cover your needs, but it can affect the people that matter the most to you.

Therefore, it's vital to check your policy every 3 to 5 years to see if it needs to be updated. Life changes such as having a baby, getting married, purchasing a house, or being the breadwinner can also affect many people's decision to change their life cover amount.

How much cover is enough to protect your loved ones? This is where speaking to an insurer is beneficial. The underwriting process helps insurers tailor-make a cover that is suitable for you.

If not already, you have the option of increasing your cover amount up to R5 million. Some insurers offer insurance for up to R10 million. Various factors influence the cover amount that you are covered for. 

Your premiums are affected by your cover amount

When it comes to the cover amount, what you put in is what you get out. The premiums for someone who is covered for R2 million will differ from someone who has a cover amount of R5 million. Other factors such as your health, gender, age, and lifestyle will also play a role in your premiums.

Increasing the amount you are covered for will have a see-saw effect on your premiums, meaning that your premiums will increase. This is to make sure that the cover amount keeps up with the inflation rate so that it can retain its value over the years.

Will you be able to keep up with payments?

Taking out life cover is one thing. Keeping it active is another, which is why it is vital to check if you will be able to maintain the monthly premiums should you increase your cover amount. Being caught in a place where you are no longer able to afford something that is a necessity can be stressful.

Your insurer will inform you of the increase that comes with increasing the cover amount, which is something that needs to be factored into your budget.

The premium will come with a percentage which it increases by each year or every five years. This is also known as age-related premium increases.

Remember to inform your loved ones about your life cover to make the claim process smoother for them when the time comes.  

 

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