What you need to know before signing up for a life insurance policy in 2021

Published by
Staff Writer

Getting life insurance is one of the most pleasant things that one can experience in life. Before you go signing up for a life insurance policy that you think you desperately need, you should take a step back and do some revisions.

As an adult, you want to secure your financial assets and leave enough money for the people you love. Many call this a legacy, which is doing the most responsible act by leaving a considerable amount of assets and money for the present and/or future generation to survive.

While trying to leave a legacy, you still need to make good decisions that can fulfil your wishes. Intentions on why individuals get life insurance differ, your reason is as important as some of the basics that you need to consider before taking it out.

Choosing a life insurance policy without doing any investigations can lead to negative results. For example, the claim period can be prolonged leaving beneficiaries in a financial strain. To avoid such problems you will need to scrutinize the policy you are about to choose from.

As a primary income earner, your policy will need to fulfil certain things. A life insurance policy is a financial cushion and should act that way should you pass on. When you shop for a life insurance cover you need to make sure that your beneficiaries’ health, assets, and financial well-being are taken care of.

Before choosing a life insurance cover you need to consider these instead.

Find out about living benefits

Traditionally taking out a life insurance policy was simply to protect those that you love. Today the case is different, people want to benefit from their life insurance cover. There are different options in which insurance companies reward policyholders today.

As a policyholder you can get up to 100% of your life cover amount should you suffer from a critical illness. This is if expectations are that you will live for less than 12 months. Another fact is that companies like Assupol and OUTsurance give you cashback on all premiums after a certain period of time.

The above facts should be considered. Getting your premiums back after a certain period of time is very desirable. However, you will also need to take note of the other factors that are of importance to you.

Inclusions on your life insurance policy

Inclusions are what your life insurance policy comes with. You will need to understand inclusions that come with your life insurance policy before you buy it. Many make mistakes when it comes to this because of fallacies.

Your inclusions will depend on your premiums, on whether or not they make a sound investment. Two or more inclusions at a less premium are desirable than if you were to add such inclusions at a premium.

Exclusions on your life insurance policy

Exclusions refer to the circumstances that the insurer will not cover you. You need to read and understand these. Note that making an assumption that you understand certain exclusions can be a deal-breaker. By understanding exclusions on your life insurance policy you will be able to prepare yourself.

Exclusions may include things such as death due to self-inflicted injuries, preexisting medical conditions, suicides, etc. Speak to an advisor and let them guide you on exclusions.


This is one of the obvious factors to consider when choosing a life insurance policy. Affordability is key because it saves you money. However, you shouldn’t compromise the intended level of service and benefits while you are seeking for better rates.

Having a better rate on it is important today and mostly in the future. You will need to investigate the percentage your premiums grow per year. Some life insurance providers offer a yearly premium increase waiver you can look into those as well.

Underwriting Leniency

Arguably this is the most important factor when choosing a life insurance policy. Underwriting Leniency should be something that you view with caution. Buy an insurance policy that takes your health or personal activities fairly.

If things like your smoking habits, family medical history, and other health issues make up most of your premiums, you will end up paying way more than an average person with the same age as you on the same plan. The more lenient the underwriting process is, the better.

Add-ons riders

This is an amendment, attachment, or endorsement made in a life insurance policy that gives the policyholder supplementary coverage. These are important as you don’t know how you are going to die. Unfortunately, it might not be of natural causes or accidental death which life insurance policy mostly covers.

Add ons will cement your life insurance policy by covering you for different types of death situations. For example, add ons can be critical illness cover or disability cover. Discover life over 6 add ons riders that one can take.

Conversion feature

A conversion feature allows you to convert your life insurance policy to another plan. Your insurer can allow you to change it to a whole life cover or other plans. With this flexibility, you can change your policy plan without compromising the number of years your policy has been active.

Revival Period

You will need to take note of the grace period that your insurer gives you should you fail to make payments. Today, life insurance policies can be activated or deactivated whenever necessary. Should it lapse, your insurer will give you a grace period by paying unpaid premiums at a later stage. The unpaid premiums will most likely come with a certain amount of interest.


Life insurance policies are not something that you can just shop in one day. Determination, attention to detail, and scrutiny is required. Knowing exactly what you really need to know when taking out a life insurance policy can help you tremendously.

In most cases, you will find that people take life insurance policies because of the cover amount. This cover-sighted approach will need to be dealt with with a more sound approach to choosing a life insurance policy.

Our eight factors that you need to consider when shopping for a life insurance policy will help you. You will learn that after putting these factors into consideration you will make a decision that will pay off dearly in the future.

Staff Writer

Published by
Staff Writer