Buying Life Insurance

When buying life insurance do you look for the cheapest premium?
How do you know how much life insurance you need and if you are getting a good deal?
You need to use our years of experience!

The major causes of death are heart disease and strokes, cancer and accidents/crime. The high incidence of trauma claims reinforces the fact that the need for life cover is not age dependent! Death can strike at any time with a significant impact on the lifestyle of your loved ones.

Certain dread diseases are happening more frequently. Yes, the chances of surviving a dread disease is good, especially if it diagnosed early. Your medical aid should pay the medical costs, but these diseases cause changes in your lifestyle - expensive financial burdens you need to meet.

What to look for in your policy.

Guarantee. This is the promise that your premium will not increase more than your annual inflation amount. Some companies will increase your premium substantially at the end of this guarantee period. Other companies have extremely short guarantee periods. Maybe your company integrates your life cover with your medical aid, so your premium depends on your health. And you have little control over that! What will your premium be an 10 years time?

Policy wording. Do you fully understand what you are covered for? Do you know what you need to qualify for and prove when you claim? How easy is it to understand the definitions of say, disability and dread disease in your policy.

When buying-insurance you need to answer these questions:

Who relies upon my earnings?

What will happen to them if I can no longer provide for them?

What will I do if I can no longer work through an illness or an accident?

Who will look after me?/

How much cover do I really need?

WE CAN HELP YOU!! Complete the enquiry form and we will send you a very cost-effective quote. Once you accept the quote, we will send you an application with instructions on competing it. You would then submit the application and underwriting process begins.

Life insurance is affordable - for less than the cost of one cup of coffee a day, you could be covered!

• Insurance companies want to ensure you - if you are honest about your medical conditions, and high-risk professions or activities, they will pay you or your family when there is a claim!
• Too few people have enough insurance!
• Very few people have income protection disability insurance!
• Accidental life cover is fine. Not true ! This insurance is really for people who cannot get standard life cover. More people die from heart attacks and cancer than by accident.
• Only one partner needs life insurance. Not true! If one of you cannot work because of an illness, injury or retrenchment, and you cannot live on your partner's income alone, you have a serious problem!
• I smoke therefore I cannot get life cover. Not true! Some companies are now not differentiating rates for non-smokers!
• Life insurance should have a cash back bonus. Not true! Future cash values costs money and you need to check your premium carefully. There is no such thing as a free lunch!

Getting cash back in the future. Buying a life policy with a future investment value is not recommended! Risk and investment are 2 totally different strategies.
Usually, as your wealth increases you require less life assurance, and it can be difficult to change a policy that has savings attached.
Any future cash value is simply a function of a higher premium you pay during the term.
It is not "free" - you pay for it!
And what If you may be forced to reduce payments in the future? You may have penalties of up to 30% of your savings and/or the loss of life cover.
It is far better to keep life cover and investment separate.

Types of policies.

Whole-of-life insurance: This is life cover - for life! Of course you can stop it at any time, but once you have it, a life company can't cancel your policy if you become ill or are seriously injured and expected to die soon. You can link the cover to the effects of inflation, which keeps the value of your life cover real every year.

Term insurance: This is life cover taken for a specific period of time. It is more expensive than whole life cover and is normally taken to cover specific term financial liabilities.

Credit life insurance: Same as term assurance, but the cover is normally linked to a specific large debt, such as a bond or vehicle finance.

Disability insurance Your ability to earn an income is your greatest asset.
You MUST make sure that it will not stop if you cannot work. Pays out either a monthly income or a cash lump sum if you are disabled and unable to earn an income. This can be more important than life cover for a single person!

Dread Disease insurance: Pays out if you suffer from a listed dread diseases, such as heart disease, a stroke or cancer. With the advancements in medical care, we have a high chance of surviving a dread disease. But, at what cost? Your medical aid may pay the hospital bills, but what about all the other costs? How long will your employer pay your sick leave?
If you are self-employed, how will you meet your bills over a long-term illness?
Really important once you retire!

Risks not worth taking.

Not being able to provide for your children's education!

Leaving your family with no home if you die!

Not being able to earn an income for yourself and having to rely on others!

NOT HAVING LIFE OR DISABILIITY COVER!

Not claiming a benefit doesn't mean you have paid premiums fruitlessly. It means you have enjoyed many years of peace of mind, knowing that both you and your family wouldn't have been left destitute if the unexpected had occurred!

If you have policies older than two years, you should consider new forms of cover. Otherwise you could be loosing out on the competitive edge these products offer. Why should I reconsider my policies.

These are some questions you need to ask when you consider life insurance.
Insurance companies add to these basic benefits. They link your policy to your medical aid, offering reduced premiums whilst you remain on their medical aid.
Some offer you a return of your premiums.
Others offer options on reaching the term of a benefit.

Shop around when you are buying life insurance or reviewing your current cover.

Call me.

If you would like an indication of what Life, Disability and Severe Illness cover will cost, please complete the WRITE TO ME REQUEST FORM and mail it to me. I will reply with some values for you.

Don't leave your LIFE COVER concern here. Call me for advice - no obligation!

pyburn@peterpyburn.co.za

Especially if you are Buying Life Insurance.