Life insurance – 6 key questions to ask

Everyone is an individual and one-size doesn’t fit all when it comes to a life insurance policy. So before you go looking for life insurance quotes, arm yourself with some of these key life insurance questions.

Do I need a life insurance policy?

Most people do. It’s particularly important for those who have a spouse, children, parents or business that is financially dependent on you, the breadwinner or key salesperson.

Why do I need life insurance cover?

Identifying the main purpose for your life insurance beforehand will help when you get a quote from a licensed financial planner or adviser. Is the life insurance predominantly intended to pay off your mortgage, provide for the children’s education or ensure your family suffers no unnecessary hardship, should the worst happen?

What type of life insurance policy do I need?

The two main types are Term Life Insurance, which covers you for a certain term, such as the life of your mortgage, and Whole of Life, which covers you until you die, with premiums remaining constant. There are many variations to these policies, so make sure you ask your adviser to spell out the details of the life insurance policy you’re being offered.

How much will it cost?

There are many variants to take into consideration when looking at the cost of life insurance. Premiums generally are more expensive as you age. The cost will also depend on your gender, if you have a pre-existing medical condition and whether you are a smoker or not. Your occupation will also have a bearing on your life insurance cover. For instance, a deep-sea abalone diver is far more risky to insure than an accountant. Sports, pastimes and recreational activities also factor into the equation.

These are some of the most common variations but your financial planner will assess your situation and come up with a tailored individual approach at the right price.

Do the premiums increase or remain the same?

Some do, some don’t. There are two premium types in life insurance “

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