Life insurance is a contract between an insurance company and an individual insurance policyholder. The contract stipulates a sum of money payable by the insurer to the beneficiary in the occurrence of death, or after a set period, in exchange for a monthly premium 

Ideally, your life insurance coverage must be 10 to 15 times your total annual income. When getting life coverage, the key is to ensure enough coverage for your family and future needs.

An insurance premium is calculated based on different factors such as age, family medical history, amount of coverage required, gender, lifestyle, and the benefit provided by the policy. For life insurance, it is recommended that the insurance premium must not exceed 6% of the individual’s income.

Life cover refers to the amount of money that the insurer will pay to your family in case of an unfortunate event.

Life insurance can be beneficial in many ways. From providing an income to your family to pay for expenses like mortgage, debts to eventually funding one’s retirement, your life policy can help you and your loved ones secure the future.

It depends on a person’s budget and coverage needs. Term life insurance is an affordable option for people looking for coverage within a limited time. However, whole life insurance on the other hand provides lifelong coverage and is a permanent policy option.

When choosing life insurance, it is best to assess your policy goals and determine the type of coverage you need. It will help you to decide upon how much you have to pay and evaluate the best policy option available in the market. It is recommended to go for a trusted name when buying a life insurance policy. In this case, our wealth planner can help you assess your needs and match you with the best policy option accordingly.

Life insurance ensures that there is a continuity of finances for your loved ones after you die. It is important as it helps with the following upon your demise:

• Ease the financial stress of your family. 

• Gives your family some financial control.

• Help cover daily expenses.

• Help with your children’s college and university fees.

• Cover your house mortgage.

• Cover funeral costs.

• Help protect your business if you’re running one. 

• Help support spouse/family.

• Enables you to leave an inheritance. 

Yes, a life insurance policy is just as relevant whether you’re 40 or 60 years old. By maintaining a life insurance policy, your family will be provided for even upon your death, no matter how old you are.

A life insurance policy does not usually cover death due to suicide within first year of the policy.

Other reasons life insurance doesn’t get paid out include:

• Lying on the insurance application.

• There isn’t a beneficiary.

Life insurance functions to help your beneficiaries upon your demise or if you have a total permanent disability. Medical insurance pays when you have an accident or an illness by covering hospital and treatment costs.