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FAQs

Here are the most frequently asked questions about life insurance. Check through them for answers to any queries you may have and be sure to check our guides section and Jargon Buster for more details.

Will I qualify for life insurance if I am a smoker?

Although the price of life insurance is often more expensive for smokers, many insurers are still willing to insure them. However, if you transition from being a smoker to a non-smoker to receive a lower premium on an active policy, be sure to remain a non-smoker. This is important because it will help to ensure that the full policy benefit will be paid upon your death.

How much does life insurance cost?

The price of life insurance coverage premiums can depend on many things. First, the form of life insurance you select will impact the premium price. Options such as joint life insurance and whole life assurance are known for being the more expensive options than others although they can also often carry increased benefits.

What is the best type of life insurance?

The best type of life insurance for you to select will depend on your unique life circumstances. For example, if you recently purchased a home and took at a large mortgage, then mortgage protection cover may be the best option.

How long will term life insurance remain active?

The length of time a term life insurance policy will remain active depends on the initial term you set. Typically, people choose terms of between 20 and 30 years for term life insurance because this is the length of time they figure that those they love will be dependent on the income they earn. One option to consider is purchasing convertible term life insurance so that you can convert the policy to whole life insurance at the end of its term.

When is the best time to purchase life insurance?

The best time to purchase most forms of life insurance is when you are young and healthy. The younger and healthier you are when registering for life insurance, the less you will likely need to pay for the policy’s premium. Also, the form of life cover you select can also determine when you will register for the policy. For example, when purchasing a home and taking out a mortgage, it is at this time when you will likely decide to buy mortgage protection life insurance.

What are the benefits of whole life insurance?

There are many benefits to choosing whole life assurance rather than the other forms of cover however, a few main reasons usually top the list. First, whole life insurance policies are known to build cash values that can be borrowed against after you have owned the policy for a length of time. This cash value can be beneficial in case you are ever in a financial bind. Second, since whole life insurance will cover you for the entirety of your life, you can be confident that those you love will always be protected.

What are the benefits of terminal illness cover?

Many people opt for terminal illness life insurance because of the great benefits that this form of cover will provide. While most forms of life insurance only pay out benefits upon your death, terminal illness cover actually includes a policy payout upon the diagnosis of certain types of illnesses. This benefit payout can then be used for such things as covering household expenses when you are no longer able to work and medical expenses.

How does mortgage protection insurance work?

Mortgage protection insurance is a unique form of life insurance that is also known as declining life insurance. The main thing to know about mortgage protection insurance is that the benefit of the policy will be used to pay off the remaining mortgage of your house if you happen to die before it is paid off. This form of life insurance is known as declining cover because the benefit of the plan will decline with regards to the amount you still owe on the mortgage.

What can a life insurance benefit be used for?

The benefit of your life insurance policy may be used for many different things depending on the form of cover that you have. If you have standard term life insurance, then the death benefit could be used by the beneficiaries after your death for things such as your funeral expenses as well as to continue paying the monthly household expenses that were previously covered by your monthly income. However, if you buy a form of life cover such as mortgage protection insurance, then the benefit would be used to pay off the remainder of your home’s mortgage.

How do I select a policy limit?

Many tactics can be used to set the limit of your life insurance policy. In general, you can assess your current life style to determine the amount of insurance that will be required. Be sure to account for things such as your debt level and amount of money spent each month, which can be learned about outside of our life insurance frequently asked questions.