If you’re like most people, you probably have a lot of questions about life insurance. After all, it’s not something that we typically think about on a daily basis. But when it comes time to purchase a policy, it’s important to have a clear understanding of what you’re buying and why.
That’s where this life insurance FAQ’s page comes in. We’ve compiled a list of the most commonly asked questions about life insurance, so you can get all the information you need in one place.
We’ll cover topics like how life insurance works, what types of life insurance are available, and how to choose the right policy for your needs. We’ll also dispel some common myths about life insurance and answer any other questions you may have. We also cover common FAQs regarding funeral insurance, income protection insurance and critical illness insurance.
So whether you’re just starting to research life insurance or you’re ready to purchase a policy, this FAQs page will provide you with the information you need to make an informed decision.
Life insurance is a contract between an insurer and an individual where the insurer agrees to pay a sum of money to the individual’s beneficiaries upon their death.
Life insurance can help ensure that your family and loved ones are financially protected in the event of your untimely death. It can also help cover debts, funeral expenses, and estate taxes.
There are two main types of life insurance: term life insurance and permanent life insurance. Term life insurance provides coverage for a specified period, while permanent life or whole of life insurance provides coverage for the duration of your life.
The amount of life insurance you need depends on various factors, including your income, debts, and number of dependents. A general rule of thumb is to have coverage that is equal to 10 times your annual income.
Use our Life Insurance Calculator to estimate amount of cover you need.
A beneficiary is the person or entity that receives the proceeds of your life insurance policy upon your death.
A premium is the amount of money you pay to the insurer for your life insurance coverage.
A rider is an add-on to your life insurance policy that provides additional coverage or benefits.
Yes, you can borrow against the cash value of certain types of permanent life insurance policies.
If you stop paying your premiums, your life insurance coverage will lapse and you will no longer be protected.
Eligibility for life insurance depends on various factors, including your age, health, and lifestyle. You will need to apply for coverage and undergo a medical exam in some cases.
The length of time it takes to get life insurance coverage can vary, but it typically takes a few weeks.
Yes, you can have multiple life insurance policies to provide additional coverage or to cover different needs.
Life insurance proceeds are generally not taxable, but there may be exceptions if your policy has cash value or if you have a large estate.
Your premium is determined by various factors, including your age, health, occupation, and lifestyle.
Yes, you can change your beneficiary at any time.
Critical illness insurance is a type of insurance that pays out a lump sum of money if you are diagnosed with a covered critical illness, such as cancer, heart attack, or stroke.
Critical illness insurance can help cover the costs associated with a critical illness, such as medical bills, lost income, and other expenses. It can also provide financial security for you and your family during a difficult tim
The illnesses covered by critical illness insurance can vary depending on the policy, but typically include cancer, heart attack, stroke, and other serious illnesses.
The amount of critical illness insurance you need depends on various factors, including your income, debts, and medical history.
A waiting period is the amount of time you must wait before you can make a claim on your critical illness insurance policy.
A benefit period is the length of time that benefits will be paid out if you are diagnosed with a covered critical illness.
Your premium is determined by various factors, including your age, health, lifestyle, and the amount of coverage you need.
Yes, you can have both types of insurance to provide additional coverage and protection.
If you are diagnosed with a covered critical illness, you can make a claim on your policy and receive a lump sum payment.
It depends on the policy, but typically you can only make one claim for each covered critical illness.
Yes, you can cancel your policy at any time, but you may be subject to cancellation fees or penalties.
The length of time it takes to receive a benefit payment can vary, but typically it takes a few weeks.
No, the benefit payment from critical illness insurance is generally not taxable.
It depends on the policy and the specific condition, but some policies may exclude coverage for pre-existing conditions.
Income protection insurance is a type of insurance that provides a regular income if you are unable to work due to illness or injury.
If you are unable to work due to illness or injury, income protection insurance will pay out a percentage of your income until you are able to return to work.
The illnesses and injuries covered by income protection insurance can vary depending on the policy, but typically include illnesses and injuries that prevent you from working.
The amount of income protection insurance you need depends on various factors, including your income, expenses, and lifestyle.
A waiting period is the amount of time you must wait before you can make a claim on your income protection insurance policy.
A benefit period is the length of time that benefits will be paid out if you are diagnosed with a covered critical illness.
Your premium is determined by various factors, including your age, health, lifestyle, and the amount of coverage you need.
Yes, you can have both types of insurance to provide additional coverage and protection.
If you are unable to work due to illness or injury, you can make a claim on your income protection insurance policy and receive a regular income.
It depends on the policy, but typically you can make multiple claims if you are unable to work due to different illnesses or injuries.
Yes, you can cancel your policy at any time, but you may be subject to cancellation fees or penalties.
The length of time it takes to receive a benefit payment can vary, but typically it takes a few week
The benefit payment from income protection insurance is generally taxable as income.
A pre-existing condition is a medical condition that you had before you applied for income protection insurance.
It depends on the policy and the specific condition, but some policies may exclude coverage for pre-existing conditions.
Funeral insurance is a type of insurance that pays for the expenses associated with a funeral.
Funeral insurance typically pays out a lump sum upon the policyholder’s death, which can be used to pay for funeral expenses.
Anyone can purchase funeral insurance, regardless of age or health status.
The amount of coverage you need depends on the type of funeral you want and the associated costs.
Funeral insurance benefits are generally not taxable.
Yes, you can name a beneficiary who will receive the benefit payment upon your death.
Yes, you can change your beneficiary at any time.
No, most funeral insurance policies do not require a medical exam.
Yes, you can cancel your policy at any time, but you may be subject to cancellation fees or penalties.
Yes, you can purchase funeral insurance for someone else, such as a family member.
No, funeral insurance is specifically designed to cover funeral expenses.
The length of time it takes to receive a benefit payment can vary, but typically it takes a few weeks.
If you stop making payments, your policy may be cancelled and you may lose the coverage.
No, funeral insurance is specifically designed to cover funeral expenses, while life insurance is designed to provide a lump sum payment upon the policyholder’s death.
Funeral insurance can cover expenses such as caskets, cremation, burial plots, and funeral services.
