More South Africans are realising the importance of having life cover yet there are still many citizens choosing to go without it due to one simple reason; they simply don’t understand it.
If you are among those people without life cover because it might be too confusing, it’s best you look at a few questions you should ask your insurance company so to help you understand life cover and feel more at ease about taking out a life insurance policy.
How much does the policy cover me for?
Depending on your income and affordability, your policy should be enough to cover you or your family in the event of an incident. This does not only mean a large sum payout, but also the debts undertaken by the policy holder will be covered in the event of death to ensure the beneficiaries of the policy get the financial assistance required. Make sure to discuss your policy cover with your insurer.
What is the claims process?
Depending on your insurance and circumstance, the life cover payout can be as soon as 48 hours. In the event of the death of the life insurance policy holder, an insurance claim can be processed. If there aren’t any technical or legal infringements, the financial process will commence.
How much will my premiums be?
Your premiums depend largely on how much your life cover policy is. The greater the life insurance policy, the larger your premiums. You will need to discuss your life insurance premiums with an insurance company. You should also inquire whether the life insurance policy premiums are fixed or if they increase on an annual basis.
Will my family be covered too?
In the event of death, the beneficiaries of the life cover policy holder will get financial aid which will help them cover the debts of the policy holder. Be this a family member, ex-spouse or business partner. Certain life insurance policies will only cover one person where others will cover a set amount. Make sure to inquire this with your insurance company.
With who is my life insurance policy?
Unfortunately, we live in a time where crime is around every corner. The same too with life insurance policies. Make sure the insurance company is registered with the South African Insurance Association (SAIA) by contacting them and verifying the insurance company.
[Article by iWyze]
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