What you need to know before signing up for a life insurance policy in 2022

Published by
WIlliam Dube

Obtaining life insurance is one of the most pleasurable experiences one may have in life. Before you rush into purchasing a life insurance policy that you believe you require urgently, you should take a step back and make some adjustments. As an adult, you want to protect your financial holdings and provide for the people you care about. Many refer to this as leaving a legacy, which entails acting responsibly by leaving a significant quantity of assets and money for the current and/or future generations to survive.

While attempting to leave a legacy, you must still make sound decisions that will carry out your wishes. While individuals’ motivations for purchasing life insurance vary, your motivation is just as critical as some of the fundamentals to examine before purchasing. Choosing a life insurance policy without conducting any research can have significant consequences. For instance, the claim time can be extended, putting recipients in financial difficulty.

To avoid such complications, you should carefully examine the coverage you are about to select. As the major breadwinner, your policy must meet specific criteria. A life insurance policy is a financial cushion that should function as such in the event of your death. When shopping for life insurance, it is critical to consider your beneficiaries’ health, assets, and financial well-being.

Before choosing a life insurance cover you need to consider these instead.

Find out about living benefits

Historically, purchasing a life insurance policy was only for the purpose of protecting individuals you care about. Nowadays, the situation is reversed; individuals desire to benefit from their life insurance coverage. Today, insurance firms offer a variety of ways to reward customers. As a policyholder, you may get up to 100% of your life insurance benefit if you are diagnosed with a serious illness. This is true if you anticipate a life expectancy of fewer than 12 months.

Additionally, businesses such as Assupol and OUTsurance offer rebates on all premiums after a specified length of time. Consider the preceding facts. Recovering your premiums after a specified amount of time is really desirable. However, you must also consider the other elements that are significant to you.

Inclusions on your life insurance policy

The term “inclusions” refers to the provisions of your life insurance policy. Before you purchase a life insurance policy, you should familiarize yourself with the inclusions. Many people make errors in this area due to fallacies. Your inclusions will be determined by your premiums and their financial viability. Two or more inclusions at a lower premium are preferable than adding similar inclusions at a higher premium.

Exclusions on your life insurance policy

Exclusions are instances in which an insurer will not cover you. You must read and comprehend these. Notably, supposing that you comprehend some exclusions can be a deal-breaker. By being aware of the exclusions in your life insurance policy, you may prepare. Exclusions include mortality as a result of self-inflicted injuries, previous medical conditions, and suicides, among others. Consult an advisor and allow them to guide you regarding exclusions.


This is a rather obvious consideration when selecting a life insurance coverage. Affordability is critical since it enables you to save money. However, you should avoid sacrificing the intended level of service and benefits in the pursuit of lower charges. Having a lower interest rate on it is critical today and, more importantly, in the future. You’ll need to determine the annual percentage increase in your rates. You can also look into yearly rate rise waivers offered by some life insurance providers.

Underwriting Leniency

Arguably this is the most important factor when choosing a life insurance policy. Underwriting Leniency should be something that you view with caution. Buy an insurance policy that takes your health or personal activities fairly.

If things like your smoking habits, family medical history, and other health issues make up most of your premiums, you will end up paying way more than an average person with the same age as you on the same plan. The more lenient the underwriting process is, the better.

Add-ons riders

This is an amendment, attachment, or endorsement made in a life insurance policy that gives the policyholder supplementary coverage. These are important as you don’t know how you are going to die. Unfortunately, it might not be of natural causes or accidental death which life insurance policy mostly covers.

Add ons will cement your life insurance policy by covering you for different types of death situations. For example, add ons can be critical illness cover or disability cover. Discover life over 6 add ons riders that one can take.

Conversion feature

A conversion feature allows you to convert your life insurance policy to another plan. Your insurer can allow you to change it to a whole life cover or other plans. With this flexibility, you can change your policy plan without compromising the number of years your policy has been active.

Revival Period

You will need to take note of the grace period that your insurer gives you should you fail to make payments. Today, life insurance policies can be activated or deactivated whenever necessary. Should it lapse, your insurer will give you a grace period by paying unpaid premiums at a later stage. The unpaid premiums will most likely come with a certain amount of interest.


Life insurance policies are not something that you can just shop in one day. Determination, attention to detail, and scrutiny is required. Knowing exactly what you really need to know when taking out a life insurance policy can help you tremendously.

In most cases, you will find that people take life insurance policies because of the cover amount. This cover-sighted approach will need to be dealt with with a more sound approach to choosing a life insurance policy.

Our eight factors that you need to consider when shopping for a life insurance policy will help you. You will learn that after putting these factors into consideration you will make a decision that will pay off dearly in the future.

WIlliam Dube

William Dube is a finance and economic news expert with over 10 years of experience in economic anaylsis, financial product assessment and market analysis. With a numerous certificates from prestigious universities including but not limited to Yale University and the University of Pennyslivenia. William specializes in providing insightful news developments in South Africa and commentary on investment strategies, risk management, and global economic trends. You can contact him on

Published by
WIlliam Dube

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