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


Insurance Calculator Loading ...

Interesting articles on life insurance

  • Think you might need life insurance? Here are some questions to ask yourself. - If I were to die how would my dependants survive without my income? What would happen to bond or rent payments, vehicle installments or school fees? If you don’t easily know the answer to any of these questions then you most probably need life insurance. Maybe you don’t have dependents but still have bills that Read More
  • Things I wish I’d known before buying a house - Buying a house isn’t something you do every day, so when the time comes, it helps to have some inside information. An Offer to Purchase (OTP) is a serious thing This is a legally-binding document that contains a lot of jargon. Make sure you understand what you’re signing up for. Unfortunately tenants, property agents and Read More
  • A Few Questions to Help You Plan For Your Pregnancy - Although this list of questions may seem daunting at first, if you give yourself enough time to work through these questions, you should be sorted by the time your baby is born. 1 )  Admin and finance-related (pre-baby) Medical aid Do you have medical aid? What pregnancy-related benefits do they offer on your chosen option? Read More
  • Baby on the Way? How to Beat Budget Blues - Ask someone whose got kids for advice, and most likely you’ll hear: “Your life will never be the same again.” But that statement is almost always quickly followed by: “But it’s so worth it!” If you’re having your first child and up until now, haven’t had to provide for anyone but yourself, there will be Read More
  • 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 Read More
  • Buying an underwritten policy? Answer all questions honestly and accurately.  - When buying a life insurance policy it is very important to answer all questions honestly and accurately. Why? An underwritten policy is priced according to your individual risk - hence all the questions. Not answering honestly and accurately could lead to something insurers call 'non-disclosure', and that could mean a policy doesn't pay out when it Read More
  • Determine whether or not you need life insurance - If I were to die how would my dependants survive without my income? What would happen to bond or rent payments, vehicle installments or school fees? If you don’t easily know the answer to any of these questions then you most probably need life insurance. Maybe you don’t have dependents but still have bills that Read More
  • A Funeral Policy vs Life Insurance - A funeral policy is designed to pay out a quick amount of cash to cover the costs associated with a funeral. Life cover offers much higher payouts but doesn’t necessarily have the promise to pay-out as quickly. So how do you get the best of both worlds? With a Different Life policy, you can ad Read More
  • Why does my premium increase when my cover doesn’t.  - Many insurance policies have an increasing premium even though the cover amount doesn't change. Life insurance also gets more expensive as you get older; why would this be the case? Each year we get older and unfortunately for all of us that means we become more likely to die, even if only a little bit. Read More
  • What is a waiting period and why should you care?  - A waiting period is an amount of time where you pay a premium but don't yet have full cover. This is usually done to prevent people from buying a life insurance product when they suspect they might already be ill. Another way to deal with this risk is for the insurer to assess it through Read More

Don't give to get, give to inspire others to give

Simon Sinek