Common mistakes when choosing life insurance companies

Getting life insurance could be the best thing you ever do for your family as well as your own peace of mind. You can approach death knowing that your family will have the money they need when you aren’t able to pay for their tuition, holidays and luxuries. While many life insurance companies in South Africa are waiting to help you do this, FRANK can empower you to make an informed choice.

Don’t be the person making mistakes when it comes to this important insurance because an oversight or untruth could leave your beneficiaries without a payout. You wouldn’t take it out if you didn’t want your family or friends to benefit from it and you won’t have another chance to get it right once you’re dead.

How to get whole of life insurance all wrong

No one can be expected to fully understand life insurance plans straight off the bat. This is why we want to explain some of the mistakes people make when buying life insurance and why these should be avoided:

1. They go through a broker – Why pay for a broker when you can get insurance directly from FRANK without a middleman? Skipping the middleman means you can go straight to the source if you have any questions. 

2. They leave it until the last minute – Some things are too important to postpone. The older you get the higher your premiums will be. If you were us, would you give life insurance to someone who was going to die soon? Probably not.

3. They rule themselves out before checking – If you’re an older person, you may feel like there’s no point in taking out life insurance. While putting it off for too long can be to your detriment, you may not be as much of a risk as you think. Speak to one of our agents to check whether you qualify for Life Cover.

4. They get put off because they don’t want to face death – No matter who you are, you’re going to die. Make sure your family is financially protected when you do.

5. They get restricted on their number of beneficiaries – Many insurance companies limit the number of beneficiaries you’re allowed to choose. FRANK lets you have up to 5. This way, you don’t have to choose between your family, friends and pets if you love them all equally. 

Original Source: FRANK.NET

GET A DIRECT SALARY INCOME INSURANCE QUOTE

What would you consider your most valuable asset? For many people, the answer would be their house, their car, their business or even their retirement fund, savings account or even life cover. However, at the end of the day, your most important resource is probably your regular monthly income that you receive from your employer. This facilitates your entire lifestyle from business to home. Have you ever thought about what would happen should you lose your paycheque due to illness, injury or retrenchment? How would you sustain your lifestyle while looking for a new job?

Finding yourself unable to work can be sudden and unexpected. However, there is a way to ensure that if this happens to you, your lifestyle won’t be impacted. An even more worrying scenario is if you’re the primary breadwinner in your household as your family depends on you. Protect them by investigating the options that are most applicable to your circumstances with a free direct salary income insurance quote from a reputable insurer.

Benefit from salary income insurance

If your home and possessions are insured but you haven’t thought about the benefits of taking out a salary income insurance policy, then you’re risking the means to support these assets should you be unable to work. Insure your salary so that if you become disabled or you’re retrenched, you’ll be able to sustain your standard of living with the payments provided by your insurer. Read on to familiarise yourself with the ins and outs of policies and claims:

• Your insurer will pay you up to 75% of your average monthly salary. Your pay-out is calculated using your previous earnings, which are based on your average monthly salary during the year before your claim. If your monthly salary varies, if you earn a sales commission for example, then the average is calculated using the 36 months prior to the claim date.

• As with your usual income, the monthly payments are taxable.

• Claims regarding retrenchment are only applicable if you’ve been covered for more than three months, are not self-employed or employed by a family member, and had no knowledge that you were being retrenched when taking out your agreement. Retrenchment is factored in only when your employer has to terminate your employment due to:

• Adverse business conditions
• The introduction of new technology
• Reorganisation of the business

• Remember to provide notice if you change your occupation, begin or quit smoking and join or stop any risky hobby or sport. Your selected pay-out and premiums may be adjusted accordingly. This clause is important for all types of insurance such as disability cover and even life insurance.

Source: http://www.insuranceandyou.co.za/get-a-direct-salary-income-insurance-quote-and-protect-your-most-valuable-asset/