Anyone who either has a life insurance policy or is thinking of putting one in place should be aware of these five possible stumbling blocks
(PRWEB) October 23, 2013
Over the last three years we’ve processed over one hundred thousand online life insurance applications. After conducting some fairly painstaking number crunching we’ve identified five of the most common mistakes that applicants make. Anyone who either has a life insurance policy or is thinking of putting one in place should be aware of these five possible stumbling blocks:
1) Not getting the necessary cover
It’s important to make sure that you are not getting too little or too much cover. One way of working out how much you need is to look at all the coverage options that different companies provide. This means that you need to shop around. Most companies have a maximum and minimum cover amount, however, other options in between could suit your particular needs.
2) Hiding existing medical conditions
If you don't declare any medical condition, your insurance provider is under no obligation to pay out. Before entering into a life insurance policy it’s vital that you read the policy documents and ensure you have made all the required health declarations.
3) Pretending that you do not smoke
Life insurance companies consider you a smoker if you’ve had a cigarette in the last twelve months. If you choose to leave this out of the information you provide, should anything related to smoking happen in the future, you would find that the insurance will not pay out at all.
4) Going for a full medical before you get insurance
Most insurance companies will provide you with a policy based on the questions you answer. Your answers would be truthful if you had no idea that you might have an ailment. It's therefore a better idea to not have a full medical before you sign up. Once you've signed up and the ailment is discovered, the insurance has to oblige as it happened after the signing. If you find it before taking out a policy, your life insurance could cost you more.
5) Leaving it too late in life
Often people feel that they do not need life insurance at a young age, so they put it off. The problem is that you might find out that, when you do eventually consider it, your age might be against you. You need to be a certain age for the policy to benefit both you and the insurance company. They therefore have age restrictions on when you are allowed to take out your policy.
Life insurance is one of the most important purchases you’ll ever make, therefore it pays to be aware of the possible mistakes that can so easily be made.