5 Life insurance tips to know

Wanting to know more about Insurance Cover? Here are 5 life insurance tips to help you make the right choice.

Life insurance is an important part of financial planning. However, with all the complexities of different policies, understanding all of the ins-and-outs can be difficult.

1. Buy life insurance when you are young and healthy.

There are many people who say why insure myself when I am still young and healthy? Statistically, most insurance claims are paid to people between the age of 30 and 40.

2. Change your lifestyle.

Do you know that one of the factors that could affect the cost of your premiums is your health and lifestyle. If you're a smoker, your monthly premiums will be more expensive because you're more prone to risks than non-smokers.

Also, if your Body Mass Index (BMI) is low, so are your premiums too. It is therefore important to consider living a healthier lifestyle to minimize your insurance premiums.

3.  Assess future possibilities with your spouse.

Do you know that getting life insurance is a major decision that will have an impact on you and your spouse/partner. It is therefore important to sit down with your partner and talk about how each of you would financially cope if the other passed away. By assessing your finances together, you will have an idea how much life insurance you need. 

4. Choose trustworthy companies.

There are hundreds of insurance providers in the market. It's important to choose one with a proven track records, from reputation in the market (awards and reviews) to customer service to claims history.

5. Review your policy on a regular basis.

You must have observed that as you go through life your needs change. The policy that you took out when you were 30 years old and starting your family may not be right for the 55 year old you who is eyeing the not to distant possibility of retirement. By reviewing your cover you can make sure that the level of cover you have suits your current situation. If it's too much, see how much you could save by taking out a new policy with a lower level of cover.