The Essentials

'Life insurance' is a catch all phrase often used to refer to long term insurance products.

Long term insurance generally refers to insurance products that protect your family in the event of your death or in the event that you are unable to work.

In the event of your death

As far as insurance goes, life cover is pretty straightforward:
if you die (for any reason), the cover amount (or sum assured) is paid out to whomever you choose (your beneficiaries).
More on this here.

Other life events or “Risks” are insurable too. The inability to work, disability, critical illness are risks often bundled together with Life Insurance.

If you are unable to earn an income

In the event that you are unable to earn a income, what happens?
Well here, products like, Salary Protection, Disability and Critical illness Cover come into play.

Tough questions to ask yourself. What you need and why is the place to start.

Determine your needs

A little more about insurance:
Insurance is simply the transfer of the risk. You transfer your “risk” to an insurer and pay a premium in order to do so. Simple.

So what about underwriting?:
Underwriting is the term used by life insurers to describe the process of assessing risk. We ask a range of medical and lifestyle questions to determine an individual risk profile. This allows us to provide a price based on your individual risk profile.

Claims and beneficiaries

When taking out a policy the insurer needs to assess their risk. They do this by asking you questions or “disclosures”.
The main cause of claims being rejected is because of non-disclosure or “omitting the truth”. Being truthful when applying for life insurance is important as the same questions will be assessed at claim stage prior to claims being paid.

More about that here


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Think you might need life insurance? Here are some questions to ask yourself.
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What is an accelerated funeral benefit?

It may come as a surprise, but a life insurance claim can often take up to a few months to pay out.

So what about the funeral costs? Well, you could take a funeral plan, or if offered by the insurer you could get an accelerated funeral benefit as an add-on to your life policy.

The accelerated funeral benefit will pay out a portion of the full benefit prior to any investigation and can be as quick as 24 hours from receiving all the required documents.

The full benefit will pay out less the funeral benefit once the claim has been assessed.

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So whilst it may seem like a good idea to save a few rand a month by not disclosing the fact that you smoke an occasional cigarette, you may in fact be wasting money and defeating the point of taking out insurance.

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