Who Qualifies For Life Cover
If someone in your life depends on you financially then you should have life insurance. Having life cover should be your top concern. How will your family survive financially when you are gone? Just because you are here today does not promise a tomorrow. Everyone should have life cover.
There is nothing easier than a lump sum life insurance policy. Finding out about options and variousÂ coverage amounts is tougher.
Before you apply for life insurance coverage there are some things to consider. Determine how much life insurance coverageÂ you need,Â be careful not to take out too littleÂ of an amount. Make sure you think ofÂ all the household bills including the mortgage.Â Your cover amount can be estimatedÂ by using an onlineÂ calculator. It is a common mistake to be under-insured. Being over insured is a normal mistake manyÂ make as well.
You have to determineÂ Â the amount of time the insurance cover Many times once dependants leave or financial responsibilities are paid off the cover can come to an end. In some casesÂ the policy holderÂ will hold the policy until they are retired. The main thing is to haveÂ the cover stay in effect long enough for your purposes.
Be sureÂ to answer all questions correctly when applying for life cover. Your application can be refused by the insurance company for non disclosure if you do not answer the questions.
You might want to consider placing your cover in a trust.Â go wrong with placingÂ your policyÂ in a trust. A trust will ensure that all loved ones receive their benefits. Policies that are not writtenÂ in a trust become partÂ of your estate and couldÂ increase the inheritance tax liability. You will find the simple trust form with your policy packet.
Make sure you are not paying too much for your policy. You can expect to pay moreÂ if the insurance company think of you as a higher risk.
The most common policyÂ is the Level Term Assurance (LTA) where the sum of your insured amount remainsÂ the same for the length of the term. If you only want cover for payment of a mortgage or other decreasing debt you could check outÂ Decreasing Term Assurance (DTA) for a more competitiveÂ rate.
If you have any life altering event you shouldÂ check your policy to ensure you have the right coverage amount. Your policy needs change as your life does so review your coverage if you have any life changes such as a new baby or change of jobs.You may not realize that your policyÂ will need to be changed as your life changes. Changing your policy amount is a excellent idea when life changes.
Always remember you can shop around for more affordable policy prices even if you already have coverage. Be sure that you are not losing any irreplaceable benefits before cancelling a policy. You have toÂ keep in mind that if your health hasÂ Â or any majorÂ life changes have occurred you will be paying a more expensiveÂ rate for a new policy.
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