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A life insurance policy can change the lives of your loved ones, giving them financial security and funds to build generational wealth when you are no longer around. Before you take out life cover, ask insurers these life insurance questions to ensure you understand the policy and that it is appropriate for you and your family.
Understanding coverage: what does my life insurance policy cover?
The first question you must ask life insurance companies is what is covered. Life insurance policies pay out a lump sum on the death of the life assured. The lump sum is known as the sum assured and is selected when taking out the policy, such as R500 000 or R1 000 000. Life cover policies pay out for death due to natural and accidental causes. Accidental death cover policies only pay out valid claims when the cause of death is an accident such as a traffic accident. You can also add disability and dread disease cover to your life cover policy for an additional premium.
Disability insurance pays out a lump sum on permanent disability such as if you lose a limb in an accident. Dread disease cover, sometimes called critical illness insurance, pays out a lump sum on the diagnosis of a dread disease such as cancer or heart disease.
Some life insurance policies also offer a terminal illness benefit at no additional premium. This benefit allows the life assured to claim the full sum assured if they are diagnosed with a terminal illness and have less than a certain time to live, such as 12 months.
Policy terms and conditions: what are my policy’s terms and conditions?
Insurance policies are contracts that have terms and conditions. Always ask your insurance company questions about what the terms and conditions are and how they affect your policy and claim.
An important condition is that premiums must be paid when they are due or cover will be suspended and may lapse. You have a grace period of a month, 31 days, to make up missed premiums or cover will be suspended and claims may be declined. You can, however, cancel the policy at any time, although no premiums will be refunded unless the cancellation is in the cooling off period, which is around a month after taking out a policy.
Another condition is that certain exclusions may apply to life insurance, such as no claim will be paid for a death or accident that happens while the life assured is committing a crime. Pre-existing conditions may be excluded from dread disease policies, for example if you have had a heart attack a dread disease policy exclusion could be that there is no cover for heart disease or a cardiac event. One of the life insurance questions you must ask your insurer is what exclusions apply to your policy.
You can read more about life insurance terms and conditions in this blog.
Premiums and payment options: how much and when are my premiums due?
Premiums for life insurance policies are due monthly and paid via a debit order. Your premium will be calculated using the sum assured applied for and your personal details including your age, gender, education, occupation and state of health, including whether or not you smoke.
It is very important that your life insurance company answer the question: when are premiums due, and when and by how much will premiums increase.
Policy application and process: how do I apply for a policy and how long does it take?
You can apply for policies online, via a call centre or with a financial adviser. You will need to complete an application form and fill in your personal details, and answer all questions on the life insurance application, such as if you have any chronic conditions. You will also need to nominate a beneficiary or beneficiaries to receive the pay-out on your death and give your bank details for the debit order. Your insurer may ask for a copy of your ID, and your bank will confirm your debit order using DebiCheck.
Insurance companies underwrite life cover applications to assess the life assured’s risk, and ensure they offer the appropriate cover at a competitive premium. They may request medical tests such as a blood pressure and HIV test. Most life insurance policies that are applied for are accepted at standard rates, however if your health is poor or you have a serious chronic condition, an additional premium will be added, known as a premium loading. If you are in poor health with multiple unmanaged chronic conditions insurers may offer accidental death benefits only. This means that your insurer will pay valid claims for death due to an accident, but not natural causes such as cancer.
Depending on your insurer and how you apply for cover, your policy can be accepted within a few days to week or two.
You can read more about applying for life cover in “Five essential steps to apply for life cover.”
Customer support and service: what service do you offer and how can I contact you?
You must ask your insurance company questions about what support they offer and how you can manage your policy digitally, such as via a secure website. They should also have a contact centre with skilled consultants who can assist you, offer easy claims processes and have valid email addresses and an updated website. South African insurance companies are required to share details of how and when you can complain about service and/or claims. A good life cover question to ask insurers is whether or not they send a regular newsletter, what topics they cover and if there are financial education courses or articles available on their website.
1Life Insurance for your life cover needs
1Life Insurance makes taking out and managing your policies easy and convenient. You can read all you need to know about what to consider when getting life insurance on our FAQs and blogs! You can get quotes for life cover policies and buy policies online, which could save you up to 13% on your monthly premiums. 1Life Insurance offers life cover that can be tailored to your needs and budget. You can also access and manage your policy on the online policyholder services portal and WhatsApp service centre. We are committed to paying valid claims quickly, so your policy can empower your family and offer them financial stability. Talk to a skilled 1Life Insurance consultant today!
Ask before buying
Always ask your insurer all your life insurance questions and make sure you understand the answers before accepting a policy! Life cover is a commitment and when your questions are answered you will be able to decide which policy is a best fit for you and your loved ones! Your 1Life Insurance consultant is ready to help answer your questions and find a policy that meets your needs today!