Check for the insurance Product Quality
There can be a major difference between the various life insurance policies offered by numerous insurance companies. Thus it is important that you consider and compare like with like and check for the differences in the small print. This is particularly important if you are including extras such as Critical Illness Cover with your life insurance policy. Make sure to read the facts documents deeply and look for some of the following benefits:
Check out if the premiums are guaranteed to remain the same throughout the term of your policy. There are some `Reviewable´ premiums which, as the name suggests, are reviewed usually every 5 years and thus the cost of the premiums can increase drastically.
Check if the policy can be written in trust. This will avoid any delay in the money going to your dependants and the risk of inheritance tax being charged on the benefit.
Does your policy has terminal illness benefit included? This is a valuable extra which is now included in most life Term Insurance policies for free and will pay the life insurance amount early if you suffer a terminal illness.
Can your policy includes waiver of premium benefit in your plan? This is a valuable extra in your policy which, if you become too ill to work for a number of months, will ensure your cover continues without you having to pay the premiums.
Check for the Claims History
It is advisable to contact your prospective insurer and ask for their claims history details. Scrutinise their willingness to provide this information and the attitude promoted by their response. Do they look for reasons to pay claims or excuses to avoid them?
Check for the market repute/financial Strength of an insurance company.
There are rating bodies that review insurance companies and provide opinions of the every life insurance company’s financial condition in the market. It is best to review the ratings given by major insurance company rating services before buying a policy from them.
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