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In this unpredictable world, knowing that your loved ones will be financially secure when you're no longer there to provide for them, brings some peace of mind. Life insurance is the best way to prepare for when you’re no longer there, and getting life insurance quotes online is simple and convenient. But how much is life cover and how do you pick the best life insurance policy? Here's a guide to help you choose the best life policy quotes and policies for your needs.
Calculate the right amount of life cover for your needs
Many financial consultants recommend that your life insurance cover equals at least ten to fifteen times your annual salary. For a more accurate number, there are many factors to take into consideration when determining the appropriate sum assured for your specific needs.
You can calculate the sum of the following responsibilities to reach your ideal sum assured:
- Your family's annual expenses multiplied by the number of years for which income replacement may be required.
- The total amount of your outstanding debts and, if applicable, the cost of paying off your bond.
- The amount you should set up for future expenses such as your child's education, wedding, and similar big financial commitments.
- The cost of wrapping up your estate for example executor’s fees, Master’s fees and the conveyancing fees to transfer fixed property.
- Deduct the sum of your assets, such as cash on hand or in the bank, from the expenses listed above.
- Inflation may also make it harder for your family to maintain their current lifestyle in your absence as the primary breadwinner and you should factor this into your calculations.
Find a life insurance company you can rely on
Speak to your financial adviser about reputable life insurance providers who process and pay claims quickly and provide you with the most affordable cover. Your adviser will also be able to help you determine how much cover you need. Remember, advisers are there to help you get the best possible cover for your family but be sure to check that they are FAIS accredited. This means that they are properly trained and can be trusted to help you make the right financial decisions.
If you prefer to deal directly with your life insurance company, your first step should be to ensure that it is authorised by the Financial Services Council of South Africa (FCSA). Then chat to friends and family about insurers that they know of and trust. You can also visit sites like Hello Peter for reviews. Google ‘best life insurance provider’ and you will find a number of surveys of the best providers in South Africa. Visit the websites of providers, read their About pages, look for awards and testimonials from clients.
Request a life cover quote to determine the best cover you can afford
Once you have calculated your sum assured, you are ready to get life insurance quotes online. Online quotes can help you work out how much you need to budget in premiums for the necessary quantity of life insurance. Compare multiple policies to find one that provides the most cover at the most affordable price. Also consider your premium payment period in relation to your expected earnings in the coming years. You could also work with your financial adviser, who will provide you with quotes that are affordable and suit your needs.
Be honest with your life insurance provider
Inform your life insurer if you smoke or consume alcohol, or if you work in a dangerous profession. You must also disclose any current illnesses or serious diseases in your family. Your risk profile is influenced by these variables. Providing truthful, accurate information will ensure that you are covered, and it reduces the likelihood of claim rejection.
Carefully read the final life policy document
Before you make the final commitment, be sure you fully understand all the terms and conditions in your policy document. Learn the situations in which the claim will be deemed invalid, among other pertinent information. Chat to your financial adviser if you have any questions or concerns or to your financial services provider. Make sure that all the information you provided is correct so that your family can process your claim quickly and easily and avoid rejected or reduced claims.
Get a 1Life life insurance quote today
What do I need for a life insurance quote online? 1Life will provide a quote by asking just a few simple questions about your age, lifestyle, and income to help us determine your needs. When you receive your quote you can opt to speak to a consultant if you need more information or you can buy comprehensive life and funeral cover and even dread disease and disability insurance online in under 15 minutes.
The views and opinions expressed in this article are those of the authors and do not necessarily represent or reflect the views of 1Life Insurance or its employees.
We answer your questions about our products and services!
How quickly can I expect to receive a life insurance quote online?
In mere minutes, you can have an idea of what your life insurance coverage will cost you, but you must remember that your quote is more than likely just an average premium for that sum assured for a person your age. You will need to further complete underwriting questions to ensure that the premium is customised to your risk profile.
Do online life insurance quotes require extensive personal information?
No, they do not, as they are only indicative of price. Should you be serious about wanting to purchase insurance, you will be required to provide further information. The more information you provide, the more accurate your premium.
Can I customise my life insurance coverage while getting a quote online?
Most online quoting tools allow you to change your sum assured to work out if you can afford the premium. Insurance quoting mechanisms are there to show you what a premium could be to guage your affordability.
Are there any discounts or promotions available exclusively for online life insurance quotes?
Purchasing your life or funeral insurance online should offer you a discount if the process is end to end, meaning without any human intervention, as using technology affords a discount that can be passed onto the customer for self-fulfillment. With 1Life Insurance, you can get 40% off your monthly funeral cover premiums and up to13% off your monthly life insurance premiums when you buy online
What security measures are in place to protect my personal information when requesting a life insurance quote online?
There are various legislations in place that are there to protect your personal information. When it comes to transacting online, you need to ensure you know the insurer you are dealing with (that they are a reputable and registered financial services provider) and that their site is secure. The easiest way to note this is if the URL starts with https and not http.
Is there a limit to the number of online life insurance quotes I can request?
There is no limit regarding the insurance quotes you can complete. There are however limits to the sum assured you can take out when purchasing a life insurance policy.