This article explores different premium funding patterns for life insurance, highlighting the importance of affordability both now and in the future. It emphasizes the need to discuss premiums with financial advisors and understand the exact increase percentage.
Affordability is a key part of most people’s thought process when buying life insurance. However, while it is important to have premiums that you can afford today, it is also essential that your premiums remain sustainable in the future to ensure you can keep your cover.
“You can have a life insurance policy that has a premium that stays constant or level. If you choose cover that grows each year while the premium stays the same but with this option, the starting premium is a bit higher than what it would have been had the premium also been set to increase.” “Also check if the premium increases are consistent, predictable and clearly disclosed – in other words, do you know exactly what you will pay for your life insurance in the next few years? Some insurance providers transparently disclose premiums in the quote and offer premium guarantees of up to a decade.”an annual premium increase? Parsons says once you and your adviser have decided on how much cover you want to match your needs and how long you need it for, you must decide how you pay for it.
He says you can think of the aggressive increases like a balloon payment for a car that reduces the premium today, but you will pay for it later.
Insurance Lifeinsurance Premiums Affordability Premiumfunding Financialadvice
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Zanzibar demands R800 travel insurance fee – no matter how good your insurance already isZanzibar demands R800 travel insurance fee – no matter how good your insurance already is
Read more »
South Africa’s millionaire life insurance bosses – earning up to R32 millionThese are the five JSE-listed life insurance groups in South Africa and how much their CEOs earn.
Read more »
The life-saving and life-threatening uses of ketamineThe anaesthetic drug ketamine can bring life-saving hope for people suffering from treatment-resistant major depression or at severe risk of suicide, but unsupervised use or excessive dosages hold addictive and even lethal risks.
Read more »
South Africa: Hundreds of Drug Users Stranded After Gauteng Government Closes RehabsLife Nkanyisa's drug rehabs, formerly known as Life Esidimeni, had capacity for 750 people
Read more »
Nicki Minaj slams Jay-Z for choosing Kendrick Lamar over Lil WayneWhile Weezy hasn’t commented about the news himself, members of his ‘Cash Money Records’ family have shared their thoughts.
Read more »
Fans Slam Cristiano Ronaldo After Choosing Kylian Mbappe Over Karim BenzemaFootball fans have chastised Portugal captain Cristiano Ronaldo for picking Kylian Mbappe over his former Real Madrid attacking partner, Karim Benzema.
Read more »