Life Insurance

 

The Purpose of Life Insurance

Life insurance provides for your children, partner and relatives who may rely upon your income to pay for the mortgage and other expenses, in the event of your death.



Life Insurance Payments

Life insurance pays out regular payments or a lump sum to dependants.

 


Types of Life Insurance

Level term life insurance/assurance lasts for a fixed period of time, for instance 5, 10, 15, 20 or 25 years. Payouts only occur should you die during the term of the policy.

Whole-of-life insurance has no fixed period of time, so pays out when you die provided your premium payments have been met.

 

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Life Insurance Exclusions

Life insurance only pays out in the event of death. You will not be eligible for any payout if you are unable to provide for your family due to illness or disability.

Life insurance policies typically have exclusions and will not cover for every eventuality. For instance, death as a result of drug or alcohol abuse may not be included in the policy. Also, if a serious health problem exists when you take out the policy, any death related to the illness may be excluded.

Other exclusions that may be in the policy are claims involving suicide, fraud, war, riot, and civil commotion.
Furthermore, personal situations which add to the insurer’s risk, such as participation in dangerous events, occupations or sports, may be excluded completely, or only permitted if an extra payment is made for increased coverage.



Policies which include other types of cover such as critical illness cover and total and permanent disability are available.

 

 

 

 

 

 

 

 

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