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Frequently Asked Life Insurance Questions

  • FAQ on life cover topics

    • Can you get more than life policy?

    Yes, you can apply or purchase more than one cover from various companies. There are a few restrictions, but it has more to do with the amount of protection you have intact.

    • Term life insurance, does the premium increase with every passing year?

    It provides you with maximum cover at the lowest cost, and the premium is guaranteed not to increase each year.

    • In regarding with term life insurance, what does it cover?

    It covers the insured person if the person dies and the amount will be paid to the beneficiary.

    • Can you take out a life insurance plan on a person without them knowing?

    No, you cannot take out a policy without a person knowing of your plans. You will need their consent and the correct documentation to take out a plan on the life of another person. Companies will also not allow it, because most of them ask for medical tests to be done.

    • If you already have cancer, can you apply for a life cover?

    Yes, you can apply and get approved for a policy. There are limitations though; each company will offer you just a certain amount of cover depending on the severity of your cancer. It can be seen as a death benefit as well.

    • Is there a limitation to beneficiaries?

    No, but keep in mind that the amount of cover will be equally divided between all the beneficiaries.

    • Can anyone take out a life policy on you?

    Generally, the policyholder must have some insurable interest to take a plan out on your life. The family closest to you will undoubtedly get a proved than a total stranger.

    • How long does it take a company to deliver on a claim?

    Usually, companies are quick with handling death claims, and you will receive a payout within 30 days. It is in rare cases that it might take up to 60 days.

    • Can life provide companies make direct payments on the debt?

    No, the money goes directly to the beneficiary(ies). The recipient can spend the money as they please, it is now their money and in their hands.

    • Can you refund on your term insurance?

    No, you cannot. Although most companies do pay you all or some of the premiums back after the terms expire and there was no death claim paid.

    • Can you take out insurance on your parents?

    Yes, you will just have to show at requirements that it is the insurable interest. You are closest relatives of your parents, so it would not be a problem.

    • What are the five top reasons to buy life cover?

    Firstly, it will take care of the loved ones you leave behind if they depend on your monthly income as well.
    Secondly, it will help to settle debts.
    Thirdly, it will help you to pay the mortgage for your family to have a roof over their heads.
    Fourthly, it will settle education fees and help to secure your children’s future.
    Lastly, it is an income replacement for your loved ones to be able to survive and strive.

    • Is it necessary for all people to have a plan?

    No, but it will surely help. You do not have to have a policy, but it will help your loved ones in the future in case you die due to an unfortunate reason.

    • When is the best time to buy an insurance policy?

    The sooner, the better. The sooner you and your loved ones are covered, you would not have to worry about tomorrow.

    • Is tax subtracted from your life insurance?

    Yes. Before you receive your claim payout, the tax is subtracted.

    • Can you change your existing cover?

    Yes, companies are aware that there are factors that might change and that makes your plan flexible as well.

    • Who should be your beneficiary?

    Well, it should be the person closest to you like your wife or children. You can make any person your beneficiary, the one you want it to be. Make sure that you are clear to whom the money goes.

    • How much life insurance should you purchase?

    Gather all your expenses and calculate how much your family will need to survive, you should include every aspect like daily needs, debt, education, medical costs and so forth.

    So, most of the topics are covered. If you have any other questions, you are more than welcome to discuss it with one of the agents that will contact you with various offers (after you clicked on the quotes banner, on each page of Advance4Life).