Frequently Asked Questions About Life Insurance
[dropcap type=”simple”]P[/dropcap]urchasing a life insurance policy is an important decision. Be sure to choose a plan that provides you with enough cover and offers affordable premiums. We have provided a list of frequently asked questions to help you decide which life insurance plan is right for your individual needs.[button link=”https://www.myinsuranceguide.co.nz/life-insurance/life-insurance-quote/” size=”medium” type=”divider”]Get a Quote![/button]
[toggle title=”How much does life insurance coverage cost?“]
Life insurance plans differ depending on several variables: your age, gender, whether you smoke or have existing medical conditions and the amount of insurance cover you want to purchase. Other factors that can affect your plan are your occupation and lifestyle.
[toggle title=”How do I pay for my life insurance plan?“]
Insurance companies usually offer various means in which to pay for your policy. Direct debit and credit card are common payment methods.
[toggle title=”Why buy life insurance coverage?“]
A life insurance policy is purchased to care for loved ones after the death of the policyholder. The payout is generally intended to alleviate financial burdens such as the following:
[toggle title=”Do I need to get mortgage life insurance coverage?“]
Generally, banks or financers insist that you have some form of life insurance cover or income protection insurance. This type of insurance plan will cover your mortgage payments if you become ill or disabled. The mortgage insurance will clear your mortgage debt in the event of your death.
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If you stop paying your life insurance premiums, your coverage will cease. You will not be entitled to any refunds on money you have paid. It is important to budget your payments realistically before purchasing so this will not happen.
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Your life insurance premiums and cover will increase each year with your age and indexation. Indexation is the process of keeping the amount of coverage relevant to the cost of living.
[toggle title=”If I purchase variable life insurance, will I need to supply evidence of my health?“]
Yes, the underwriter will base his decisions on the answers you supply. Make sure that you disclose any medical conditions. If you supply misleading information, the insurance company will terminate your policy for fraud.
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[testimonial name=”Isreal Hartley” job_title=”Author” company=”My Insurance Guide” size=”small” type=”bubble”]
Isreal is passionate about finance, online marketing, travel and helping others increase their knowledge. My Insurance Guide was started over five years ago is one of the first insurance resources available online, free for all Kiwis to access.