Life Cover is the protection your family needs against the death of the family breadwinner. In the event of your death, your provider will pay your family a lump sum, the funds can be used to bieden the income your family needs to survive without your monthly salary. If you are interested in buying life cover, here are 10 life insurance tips.
1. Whether you buy direct or through a broker, be sure to get quotes from a number of different providers.
2. Ask the broker or provider to do a needs analysis. This will help you calculate how much life cover your family will need in the event of your death. You can also use one of the many life cover calculators available online.
3. Do not withhold information from life insurance companies when applying for cover! If the provider knows that your withholding information affects their risk of insuring, they can deny or reduce the claim.
4. Read your maintenance policy documentation completely and ask your provider or broker if you have any questions. Take special note or claim and exclusion procedure, i.e. Circumstances under All which your company will not cover maintenance.
5. Protect yourself from fraud and keep your policy documents and policy numbers in a safe place.
6. Always remember to inform your provider if you are planning a vacation. Your life insurance company may not cover maintenance in the country you are traveling to or they may need to adjust your premiums.
7. Review your policy regularly. If you have children or a second child or as your debt burden increases, you will need to cover your increased font size. Don't forget to review the recipient list as well.
8. Stay-at-home parents need life cover too! Consider the case of a stay-at-home mom who cooks and cleans for the family, helps with housework and takes taxis to school walks, extra-mural activities and doctor's appointments. Now calculate how much it will cost to pay someone for their maintenance services for the family in the event of his death.
9. As a breadwinner, disability insurance and critical illness cover are as important as life cover. Ask your broker or life insurance company for disability insurance and sickness cover ratios as well as life insurance quotes.
10. Finally, always remember that life cover is an important part of your personal financial planning. No matter how tight your budget is, never sacrifice your life insurance premiums!