Life insurance is good for many reasons. Once you pass, it can pay off your debt, your mortgage, and other end of life costs that may be needed (funeral, burial, etc). It can also provide support for important things such as education for your children’s school fees. However, with premiums always on the rise and plenty of companies to choose from, you may not understand how to find the best life insurance company.
Create entire peace of mind for yourself and your family. Understandably, you may be hesitant about life insurance, it can sometimes be a confusing process. However, keep reading to find out how you can find the best life insurance.
What is life insurance?
The whole point of life insurance is to protect yourself and your family when you inevitably pass, injure yourself and are unable to work, or become terminally ill. This will depend on your policy, of course. Life insurance includes plenty of different types of cover, some of which are bought alone and others that are bundled together.
Some different types of insurance include:
- Income protection insurance: If you are unable to work due to an injury or severe illness, you will be provided with a monthly payment that covers part of your income.
- Trauma insurance cover: If you are diagnosed with a specific illness, for example, cancer, a heart attack, or a stroke, you will be provided with a lump sum of money. This is also known as critical illness cover.
- Life cover: Life cover will provide a lump sum payment to your beneficiaries that have been nominated by you. This will be provided at the time of your death or if you are diagnosed with a terminal illness.
- Total and Permanent Disability cover: If you are no longer able to work due to a total and permanent disability, you will be provided with a lump sum payment.
A beneficiary is someone you name to become in charge of your assets and the lump sum payment that will be provided when you pass. They will become in charge of the payment that comes from your burial life insurance company. Beneficiaries are usually named specifically in documents, however, sometimes they just need to meet the stipulations necessary to make them eligible.
One of, if not the most, important things to consider before/during the time you retire, is your beneficiary. That way you know all of your assets are in the right hands.
Another ever so important thing to consider doing while looking for insurance is creating a checklist. Then you will be able to find exactly what you’re looking for. Look for the answers to these questions before taking out your cover:
- Will I be able to switch to a new policy? Understand the new company’s application requirements first. When you’re older, you may need to undergo a health assessment first depending on the time of your last health check. Remember to only cancel your old insurance once you’ve been accepted by the new one.
- What will be covered? Some policies will only cover accidental death, so make sure you determine whether or not they will cover death from illness.
- What will not be covered? Within the first 13 months, suicide is usually not covered.
- Will I be able to increase my cover without another health check if my situation changes? If you marry, have a child, or take out a mortgage, you may be eligible to increase your cover.
- How much will I be paid after a claim? You will need to ask what you will be paid if you are diagnosed with a terminal illness. Understanding the conditions is also a great idea.
For now, and the future, what will my premium cost? Stepped or level premiums? That is the question. This all depends on how old you are, whether your needs will change, or how long you need cover for.