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Useful Links For Authors Author Guidelines Article Writing Tips Why Submit Articles HomeFinance ArticlesInsurance ArticlesLife Insurance – Do You Know The Ins and Outs?Life Insurance – Do You Know The Ins and Outs? By Amanda Spohr on March 26, 2014 0
Who doesn’t want to have the peace of mind that our loved ones are taken care of financially when we pass away? Having adequate life insurance cover will ensure that your dependants won’t be burdened with funeral expenses, medical costs, debt and legal expenses. In this article we will give you the ins and outs of life insurance.
There are two types of life insurance
Term life insurance
Term life insurance can be taken out for a specific length of time. That period, or the term, is determined by the client, depending on the length of time he or she wants to be covered. For instance, the client can decide to take out life insurance for the number of years his or her family will be financially dependent on them, or perhaps until their bond is paid in full.
Whole life insurance
Whole life insurance provides cover until you pass away. This cover pays out a guaranteed amount, and you are covered for the duration of your life. Initially, it is probably more costly, but this type of life cover offers savings and retirement annuity as well which is worth the initial extra premiums. Long-term, whole life cover will be more cost effective in comparison to term life insurance, where premium increases happen from time to time.
What do you want your life insurance to do?
Do you want your life insurance comparison life cover to pay for your funeral, debts as well as provide a comfortable living for your loved ones when you pass away? Make calculations of what all this would cost and base your choice on that. Also take into account that life insurance taken out when buying a house only covers the value of the bond.
Get the best possible value for your money
Life insurance is just like any other product or service which means that you should shop around for the best deals. Many life insurance companies also have an online presence, so comparing packages and prices is very easy. Remember, while affordability of the insurance premiums is important, the reputation of the insurance company is just as important, if not more so. Make sure you deal with a reputable company, even if their premiums are a little higher.
How to pay less for your insurance cover
Applying for life cover involves medical tests. This is done to minimise the risk to the insurance company. As a general rule of thumb, the healthier the client, the better it is for the insurer, and the lower your insurance premiums will be. If you are not already a fit and healthy person, start changing that now. This does not mean that you have to take drastic measures. By eating healthily, losing some weight, kicking your smoking habit, lowering your alcohol intake and exercising regularly you will get better results in your medical examinations and the best chances at lower insurance premiums.
As your life changes, so should your cover
Life changes continuously and the life cover that was perfect for your situation a couple of years ago may no longer be sufficient to meet your current requirements. It is important to review your insurance policy from time to time. This will give you the peace of mind that your cover is still adequate.
Last but not least
With the information in this article you should not have too many problems choosing the right life insurance policy for you. For more in-depth information, it is advisable to contact your insurance broker or financial advisor who will be able to assist you with any questions you may have.
BrightRock (Pty) Ltd is a licensed financial services provider underwritten by Lombard Life Ltd and a proud member of the South African life insurance industry. BrightRock’s needs-matched life cover is uniquely structured to allow individuals to work with their financial adviser life insurance comparison http://lisagroup.com.au/life-insurance/comparison to create the best life insurance solution for them.
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