Life insurance is a legal contract that you enter with your insurer. You and the insurance company are bound by certain terms and conditions that you both agree to beforehand.
Hence, you should be clear on what these terms and conditions are before agreeing to it.
For what do you need life insurance?
Different people need life insurance for different reasons. The following are some common reasons that people find life insurance beneficial:
- To provide a regular payout to their family after their death
- To provide a lump sum to their family that they can use to pay off a mortgage (or any other debt)
- To provide a lump sum to their family so that they can cover any significant expenses such as medical bills
- To financially support their children’s education
- To ensure that they have enough money during their retirement
Reflecting on your motivations for getting life insurance can help you choose the right policy. For example, if you want to achieve the first goal, the family income benefit is likely the right policy for you. The second one- paying off a mortgage- can be achieved by taking out a decreasing term assurance policy.
How much cover do I need?
This is one of the most important life insurance questions to ask. You can accurately estimate the amount of cover you need by summing up your outstanding debts and significant expenses and the amount your family will need to receive to be able to cover daily expenses after your death. Also factor in any insurance covers you already have in place as well as the amount in your savings account.
What information should I give?
One of the life insurance basic questions is what information you should be giving. This is because the information you provide will determine your level of risk, which will, in turn, decide the premium you have to pay.
For example, if you are a diabetes patient or a heart patient, there is a greater level of risk. Hence, the insurance agent would want to know your medical status/history. This allowa them to calculate the monthly premium.
We would recommend you to talk to one of our advisers for life insurance quotes.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
Call 011-3733-4610 – Monday to Thursday from 11.00 to 19.00 and on Friday between 11.00 and 16.00