The average life insurance policy isn’t hard to understand – you take out this kind of policy to basically get life insurance cover to protect your family. So, if you die unexpectedly, the insurer you are signed up with will pay out on the policy to give your next of kin a lump sum or an income according to the terms of your agreement. In most cases you will pay for your life insurance policy on a monthly basis for as long as the policy is in force – the payments here are usually referred to as premiums.
All this may simply be common sense but there are other things you need to know about a life insurance policy before you take one out. For a start it is absolutely vital that you read the terms and conditions of any policy before you buy it as this is where you will find all the information that you need to know before you proceed. The terms and conditions will give you an exact idea of what your policy will cover you against and what it won’t.
The fact is that your life insurance policy may not give you fully comprehensive cover unless you ask for it, and in some cases, you may need a special policy. The majority of policies will generally cover you against death by accident or illness but they will also take your past medical history into consideration before you’ll get cover for everything. So, for example, if you have had an illness in the past then you may well find that your policy won’t cover you for death that relates to this illness. Don’t be tempted to lie about your medical history just to get the cover you need – if you do die and your insurer discovers that you haven’t told them the truth, then you’ll invalidate your policy and they won’t have to necessarily make the payment on the policy.
These particular clauses are generally known as exclusions. In most cases, the majority of insurers will have the same kind of general exclusions but not all will be exactly the same. So, there are some specialist insurance companies out there, for example, that will be able to give you cover for existing medical conditions in certain circumstances if you do have problems finding a standard insurer that will help you out. These specialist insurers, as you might imagine, may charge you a little extra for being more flexible, but the extra cost is usually worth the peace of mind of knowing that you have fully comprehensive cover in place. And, if you shop around for a life insurance policy on the Internet to find the cheapest deal then it’s perfectly possible to get a really good deal even if you do have an existing medical condition or problem. Alternatively, you can get Critical Illnesses to cover certain medical conditions like the 36 critical illnesses to lower the cost of the premiums.
Please contact vafs.ca/primerica for a life insurance policy illustration and FNA (Financial Needs Analysis).
Presented By: A. M. H. Lin
Independent Representative of Primerica
Tel/Voicemail: 778 801 8987