Many South Africans realise the importance of life cover, but do not understand it and therefor choose to go without it. Here are a few questions you should ask your insurance provider to assist you in understanding life cover and make you feel more comfortable about signing up for a life insurance policy.
With whom is my life policy?
Unfortunately, there are untrustworthy insurance companies that mislead people and offer inadequate insurance products. Contact the South African Insurance Association (SAIA) and verify that the insurance company is registered with them. It is mandatory for every life insurance provider to be registered with the SAIA.
How much am I covered for?
Your life policy should cover you or your family in the event of a death. Ensure that the beneficiaries of the policy have the required financial support and that the pay-out will also cover the debt of the policy holder.
How much is my monthly premium?
The monthly premium depends on how much the life policy pay-out will be. The bigger the life cover, the higher the monthly premium. Know how much you can afford and plan your life policy according to your budget. Also inquire whether the life policy premiums are fixed or if they increase annually.
Who will be covered on the life policy?
A life insurance policy offers financial support to the beneficiaries of the life policy holder. A beneficiary can be a family member, business partner or ex-spouse. Some life policies only cover one person whereas others will cover more than one person.
What is the claims process?
The life cover pay-out can be as soon as 48 hours, depending on the circumstance of the death and your insurance. A claim can be processed upon the death of the life insurance policy holder and if there are no legal or technical violations, the financial process will begin.