Taking out life insurance is only common sense in an unpredictable world, and is essential if you have loved ones dependant on you. While we all don’t like to think of the worst happening, it can and does, so taking out adequate protection on your life is essential.
Basically a life insurance policy pays out a predetermined sum of money in the case of the death of the insured.
However there are many clauses which can affect and cause the policy to become void should the cause of your death be linked to them. There are also many factors which apply to policies in general regarding premiums and cover.
This is why it is important that you understand what you are covered for and what exclusions apply to your policy. While these can vary there are some common factors:
Not mentioning an illness you already have at the time you take out the policy can have a serious affect on whether your loved ones can make a successful claim. It is essential you always give honest information at the time of taking your policy out and declare any illness you have or have had when applying.
The premium you are quoted when you consider taking out life insurance is dependant on many factors. As an example, how old you are at the time of taking out the policy is a big factor in how much the policy will cost per month as will your height and weight.
Your occupation is also is taken into consideration - the more at risk you are, the higher the premium. Whether or not you are a smoker and the general state of your overall health will also play a deciding factor.
How much you will pay will also depend on the amount of cover you wish to take out and the type of policy you have chosen. Along with this you will be asked questions regarding your lifestyle. Obviously, if your favourite weekend activity is sky diving or a similar high risk sport, then you will be classed as a higher risk and the costlier the cover will be.
Always make sure you know what you are covered for and what you aren’t covered for. Check out the exclusions which will usually be found in the small print and definitely take the time to look a policy over.
By: David Thomson -