Getting life insurance is smart in a world where things can go wrong, and it's a must if you have loved ones who depend on you. Even though we don't want to think about the worst, it can and does happen, so it's important to protect your life.
Basically, a life insurance policy will pay out a set amount of money if the insured person dies.
But there are many clauses that can affect the policy and make it worthless if your death is linked to one of them. There are also a lot of things that affect premiums and coverage for all policies as a whole.
This is why it's important to know what you're covered for and what your policy doesn't cover. Even though these can be different, there are some things that are usually the same:
If you don't tell the insurance company about a disease you already have when you buy the policy, it could make it very hard for your family to make a claim. When you apply for your policy, you should always be honest and tell the truth about any illnesses you have or have had.
When you think about getting life insurance, the premium you are given depends on many things. As an example, when you buy the policy, your age, height, and weight all play a big role in how much it will cost you each month.
Your job is also taken into account. The more risky your job is, the higher your premium will be. Whether or not you smoke and how your health is in general will also play a role in the decision.
The amount you pay will also depend on how much coverage you want and what kind of policy you choose. On top of that, you will be asked questions about how you live. Obviously, if your favourite thing to do on the weekend is skydiving or another high-risk sport, you will be considered a higher risk, and your insurance will cost more.
Make sure you always know what your insurance covers and what it doesn't. Check the fine print to see if there are any exclusions, and make sure you take the time to look over a policy.
