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People are often left unaware that they can chop and change their life insurance policies as they see fit, to give you the cover that you need to suite your needs best. That means that you have cover for the important things and nothing more that is unnecessary, otherwise you end up wasting money on cover that you don’t really need. To give you a quick example, let’s take your total outstanding debts and calculate the total outstanding amount that you need to pay in order to settle up with your creditors. If you have a home loan or mortgage for the house you live in, and you want to make sure that your family will have a place to stay even when you are no longer there to pay for the place. The total life cover amount that you choose will need to cover that amount at the very least, if that is your financial goal for life cover. When you compare different life insurance quotes with each other, you will start to notice how each one views your risk profile. There are big differences in premiums for the exact same amount of cover, purely because each insurance company will cover themselves differently and will offer different types of packages to different types of clients. Premiums that are paid are determined actuarially by creating mathematical formulas that are designed to factor in certain aspects of a person’s life to determine their current risk profile. Things like a record with the credit bureau affect your profile negatively, whereas high liquidity is more preferential. They are also able to factor in things like your age, how long you have been working for, how often you exercise and, in some cases, they will even get you to check-up on your health to see if you are completely healthy before they accept you as a client of theirs. You also have the option to extend your cover to include things like disability and serious illnesses like cancer and HIV. Insurers will often throw in a few extras to sweeten the deal for you. Things like free funeral cover and extended indemnity cover for income protection if you include it with your life cover are just a few examples that you might encounter. Regardless of where you take your policy, always make sure you can afford the policy and that the cover you are getting is adequate enough to meet your financial obligations in the future and ensuring the welfare of those you leave behind.
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