Life Cover

What is Life Cover?

Life cover pays out either a lump sum or an income in the event of your death.  Life Cover is purchased by individuals who want their family to receive a lump sum of money if they die prematurely. The money can be used to ease the financial burden on a family after bereavement.  A tax-free lump sum paid out to your loved ones in the event of your death.

How much Life Cover do I need?

The amount of Life insurance and serious illness that is required can differ from person to person. We can help you to identify your life cover need.

How much does Life Insurance cost?

The price of your Life insurance policy is based on your age, smoker status, and your health. The answers you give and the options you choose will have a direct impact on the premium quoted. Below are some of the variables that affect the price of your policy.

• The more life cover you want, the more expensive it is.
  
• The longer the term of the policy, the more expensive it is.
• The older you are, the more expensive it is as the probability of you claiming is higher as you get older.
• If you add serious illness to your policy, it will significantly increase the price.

• Standalone Serious illness is more expensive than Accelerated.

• A Dual life policy is more expensive than a joint life or single life.

• Choosing a convertible option will slightly increase the premium.

• If you have any ongoing health issues, the premium may be increased.

• If smoke, your premium will increase by 33*% on average.

• Additional benefits to the policy will increase the premium (accident cash cover, broken bones, Hospital cash benefit etc).

How can I reduce my insurance costs?

There are a few ways you can save money on your insurance.

1. Talk to a Qualified Financial broker(Finance Choice).

2. Choose the right kind of cover. There are a number of different types of policy, but the kind of policy that you choose will have a dramatic impact on the cost of your policy.

3. If your life insurance is assigned to a bank loan or mortgage, don’t think you can’t replace it a cheaper and often better policy, you’re fully entitled to do so!

4. If you’re a smoker who’s looking for life insurance, then look at quitting. Smokers pay higher life insurance premiums than non-smokers. However, with most insurers, if you have been tobacco free for a period of 12 months or more, you’ll be classed as a non-smoker.

What is convertible term cover?

Convertible term cover, also referred to as a conversion option, allows you to extend the term of your cover at any point over the course of your policy without having to take a medical examination or answer any questions about your health, regardless of your age or health status. Convertible premiums are slightly more expensive than non-convertible premiums.