Cheap life insurance: key factors to consider

Published on 6 October 2010

by Features Writer

Looking for cheap life insurance online? In addition to affordable premiums, there are several other factors influencing whether a life insurance policy is right for you. Before you just sign up for with the cheapest life insurance quote provider, consider the following points:

Does it offer appropriate insurance cover?

Getting the right level of cover is vital. Especially when it comes to higher sums insured, many life insurers may require you to undergo medical testing, which typically includes blood sample analyses, in order to help manage their underwriting risks. Opting for a test free life cover policy may mean that you're getting lower levels of life insurance. Always ensure that the policy you choose provides age appropriate cover for your needs, both now and in future.

Does it offer cash back benefits?

In addition to low premiums, cash back benefits can help you save even more if you don't claim. Instant Life, for example, offers cash backs of up to 20% for every 10 claims free years.

Do you understand the pre-existing conditions clause's implications?

Just because you don't get tested up-front doesn't mean that your existing medical conditions won't affect your claims. Honesty is the best policy; always disclose any pre-existing conditions fully up-front. Some life cover benefits come with a holding period, after which you will be covered.

While pre-existing conditions may also impact your policy premiums, a policy that pays out but costs a bit more is obviously more beneficial than a cheap insurance policy that does not.

Does the policy make provisions to beat inflation?

Not all policies offer a free annual cover benefit increase, which means that the amount you receive from a claim in 10 years may well be worth less in rand terms than if you were to claim today. Instant Life provides a free year-on-year benefit increase of 5% to help fight inflation.

It pays to compare life insurance quotes

Not only does comparative shopping help you find the cheapest life insurance quotes, it also gives you a good comparative perspective of each life insurance policies features and benefits. Get started by checking out Instant Life, South Africa's online life insurance administration leaders. Apply today; request a free life insurance quote online using their Quote/Sign-up form here.