Best Life Insurance Tips for Everyone
When it comes to protecting one's loved ones, there may be no more important step one can take than taking out a life insurance policy. But with so many different companies offering so many seemingly different products, how are we even supposed to know where to begin. Firstly let's explain some basics of this type of insurance and then we'll move onto some of the best tips to help anyone out there shopping around for life insurance. There are two primary channels through which one can get life insurance; namely online self-service and via a registered financial advisor (broker). Online Self-Service: Online self-service refers to online companies on whose websites one can apply for life insurance. These companies have become increasingly popular over recent years , so much so that the competition in this space is extremely fierce. Instant Life is an online self-service option. They cover your whole life, and offer you an instant online quotation and cover up to R6 million Rand without a medical check-up with the option to buy your policy there and then. With a 20% cash back option every ten years, that might just pay for a nice boat cruise while you’re still alive and kicking! Be sure to use their online calculator, just to make sure you cover yourself properly. Via a Financial Advisor: This is the more traditional method by which one can get life insurance. Consulting with a registered and licensed financial advisor or insurance broker is most ideal for those with families, dependants, and a host of assets and liabilities. A registered financial advisor or broker is able to provide you with his or her knowledge and expertise and advise you according to your unique situation. Old Mutual has a Life Plan Range and their Greenlight plan offers you cover for when you’ll need it most. One thing to keep in mind is that a life cover policy is not the same as house or car insurance, it's your life. Your existence means something to a lot of people; there are people who depend on you. The onus is on you to choose wisely. Sanlam will help you to think ahead and you can speak to a financial advisor obligation free or you can do it yourself with Sanlam’s 6 easy steps. Life Insurance vs. Life Assurance: Life Insurance is where your life is insured for a specific term, known as the policy term. If you die within the term, your beneficiaries will receive a payout. If you outlive the policy term, the policy will have no residual value, meaning it ends and no one receives any money. 1Lifedirect’s Pure Life Cover, also offers up to R6 Million Rand in cover, whilst covering you for your whole life. Life assurance is where your life is insured and part of the premium is invested. When you reach a certain age, it pays out the invested amount accumulated over time. If you die within this period your beneficiaries will receive the payout. It's a wise choice for life insurance and as a retirement plan. Old Mutual and Sanlam has a variety of options available to make sure you are financially planned for. Life Insurance Tips: Disclose all relevant information (such as medical history) on your application, here is where honestly will be the best policy. Being open and upfront from the beginning of your insurance application will most likely reduce your premium rates as well as help you to avoid any problems upon claiming When comparing life insurance quotes, make use of online calculators to give you an idea of how much cover you need. If the price of insurance is of concern (as it would probably be for most), then investigate premiums beforehand. It's also a good idea to have a financial needs analysis (FNA) done by a qualified and licensed financial planner.This will first and foremost help you to determine your needs and available budget for insurance premiums. Under vs. Over-Insured. Don’t underinsure yourself – with life cover, less doesn't mean more; the more you can get for your Rand the better. On the other hand, don't over-insure yourself either. Paying more for cover you don't really need makes no sense. If you struggle to ascertain the right level of cover for you, it's advisable to consult with a financial advisor. If you change jobs (occupation) inform your insurance provider. If you were a clerk and got a job as a firefighter, your risk increases and as such your insurance provider needs to know. Familiarize yourself with all the clauses in which your policy will not pay out. If you don’t understand anything ask your insurance broker or contact your insurance provider. Review your will and nominated beneficiaries and make sure they're up-to-date. If your life situation changes (think divorce) you should update your policy accordingly. This will ensure that your beneficiaries are taken care of fairly and equally and that your liabilities will be settled. Read independent reviews of your chosen company. This is not simple car insurance – this is your life and remember you won’t be the one suffering the consequences or reaping the benefits, your loved ones will.
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