Making sense of life insurance quotes

When it comes to financial protection and peace of mind about your family’s future financial security, life insurance can be a valuable addition to your personal finance portfolio.

Making sense of life insurance quotes

However, a life insurance quote can be a confusing piece of information, so let’s try to make sense of it, including how to get the best life insurance quote, the factors that influence your life cover premium, and the benefits of having life insurance. 

What is a life insurance quote?

A life insurance quote is an estimate of what you will pay for a life insurance policy. It is based on several factors, including your age, health status, lifestyle, and the coverage amount you require. When you request a life insurance quote – from your financial advisor, online, or directly from a life insurer – these factors will be taken into account and you will be provided with an estimate of your life cover premium. You can then compare different options and choose the one that best suits your needs and your budget.

Factors influencing your life cover premium

The monthly or annual payment you make to keep your life insurance policy active is your life cover premium. Various factors could influence your premium in different ways, including:

  1. Age: Typically, the younger you are when you take out your life insurance, the lower your premiums will be. This is because younger individuals are seen as lower risk.
  2. Health: Your overall health and medical history play a significant role. Non-smokers and those with no serious health conditions usually receive lower premiums.
  3. Lifestyle: Engaging in high-risk activities or occupations could increase your premiums.
  4. Coverage amount: The more coverage you need, the higher your premiums will be. It is important to balance the coverage amount with what you can afford.

Benefits of life insurance

Life insurance offers numerous benefits, providing financial security for your family when you are not able to. Some of the key benefits include:

  • Financial protection: Life insurance ensures that your family can cover living expenses, make regular debt repayments, and meet any other financial obligations they might have, after you pass away.
  • Freedom of choice: The funds can be used for any purpose your beneficiaries choose.
  • Estate planning: Life insurance can help cover estate duty and taxes, ensuring that your assets can be passed on to your heirs and beneficiaries without their inheritance being eroded.
  • Peace of mind: Knowing that your family is protected provides immense peace of mind, about your family’s future financial security.

Getting the best life insurance quote

To make sure you get a policy that offers comprehensive coverage at a reasonable cost, keep these tips in mind when you go in search of life insurance quotes:

  1. Shop around: Compare quotes from different insurers to find the best deal.
  2. Provide accurate information: Be honest about your health and lifestyle to avoid errors or complications later.
  3. Get good advice: A professional financial advisor can explain the different life cover options, and help you understand the practical and financial implications based on your personal circumstances.

Using a life insurance calculator

A life insurance calculator is a valuable tool for anyone looking to take out life insurance. It gives you an idea of what life cover could cost by generating a quick estimate of the life cover premium you could expect to pay. Here’s an example of a life insurance calculator for you to try.

Securing a suitable and affordable life insurance policy could be an essential step in safeguarding your family’s future. Be sure to find the right coverage for your needs, and compare quotes to get the best deal.

Whether you’re in need of a will, life insurance, education cover,
or the power of all three, we have got you covered.