If you’re considering buying life insurance, then it’s likely you have plenty of questions. Here are the answers to some of the more common ones.
A. Life insurance is the best way to protect both the important people in your life and your property when you die. Life insurance is designed to prevent those you leave behind from incurring financial losses that may occur. In some cases, people are required to carry life insurance, particularly if they have a mortgage.
A. Just about everyone who has family or financial responsibilities should have life insurance. There are two types available, term insurance and whole-of-life insurance.
A. In some cases, yes. A medical underwriter will evaluate your application for insurance. It’s possible that it will be accepted immediately. In some cases, the insurer may request a medical report from your physician, or may require you to have a medical exam, the cost of which it bears.
A. Simply fill out and submit the enquiry form. You will be contacted by an approved individual financial advisor who will guide you efficiently through the entire process. These advisors have in-depth knowledge of life insurance products and can provide information customised precisely to your situation. Why use a static price comparison web site or one-size-fits-all quotation from a bank when you can deal with a knowledgeable professional?
A. Not necessarily. Insurers base their premiums on the information contained in your application and on your state of health. Should any of your relevant information change, it’s possible your premium could rise. This is particularly true if the insurer has any concerns regarding your medical history or if your state of health declines. There’s no guarantee implied by an insurer that your premium will remain constant.
A. Yes, with some applicable conditions. Smokers can expect high premiums, and even if you stop smoking, your cost will remain high until you’ve been smoke free for at least one year.
A. Yes. If you have withheld relevant information from the insurer, your survivors’ claim may be denied. Also, most policies do not pay out in cases of suicide. In addition, if you take up a detrimental habit like smoking and do not disclose it to the insurer, the insurer may deny a subsequent claim. Generally, when you make such a disclosure, your premium will increase.
A. Coverage takes effect as soon as the policy is issued. Some insurers, though, place restrictions on claims within the first two years. For example, a claim related to death caused by a pre-existing condition may be denied if it occurs within the first two years.
A. This is a type of insurance that provides cover for an agreed-upon period, or term. The term can be any number of years, but typically runs for 10, 15 or 20 years. If you die during the term, the insurance pays out to your survivors. If you die after the expiration of the term, no payment is made. Increasing term cover automatically adjusts the premium upward as the term progresses. This type of cover is a good way to keep pace with inflation. There’s also increasable term cover that allows policyholders to increase their premium at certain times, such as on the policy’s anniversary date. With both types of cover, the amount insured rises accordingly.
A. If the policy has a return of premium rider, the monies you’ve paid are refunded to you at the end of the coverage period. Do be aware, however, that this rider may increase your premiums significantly.
A. Also called whole life, this is a type of insurance that pays out regardless of when you die. It’s generally more expensive than term insurance, and many people consider it to be a form of investment.
To determine the ideal type and level of life insurance cover for you, it’s best to obtain a personalised quotation. Why not submit an enquiry form today?