Life Cover: Increasing Security During Uncertainty

Only one thing has been constant throughout the world’s history, change. In recent time, however, the pace at which change occurs has increased. The amount of change to the world’s environment has been staggering enough to result in climate changes. There is also a proliferation of diseases stemming from the current sedentary lifestyle which were little known in the past. This makes for increased uncertainty when it comes to how long a person’s life would be and whether that span would be largely productive.

Insurance, like life cover, has been developed to provide a modicum of security in the event death or disability occurs. It is more aptly termed “death cover” in some instances as the benefits from this form of insurance may be enjoyed by the beneficiaries only upon the death or disability of the principal. The more technical term among insurers is Term Life Insurance.

This is not just for those who are about to retire. In fact, the earlier a person acquires this form of coverage, the higher the benefits this person gains. For instance, those between the ages 56 and 65 may hypothetically only apply for a maximum half a million dollars. A decade earlier, and the amount that one may apply for doubles to $ 1 million. A person as young as 16 years old may do so with some plans, and for a maximum coverage of one and half million dollars.

Insurers may check a person’s health and lifestyle status. This sometimes includes looking into the applicant’s family medical history. This will help them decide the amount of money a person may apply for as cover for the eventuality of death of incapacity. Those who are healthy are granted the option to apply for higher coverage than those who already have history of disease that increase the likelihood of death. This is another reason why applying while one is still young is advisable.

There are cases, though, where insurers do not consider themselves bound to pay the coverage amount. This is stated in the terms and conditions when taking out life cover with them. There are some minute variations, but there are two situations that all companies stipulate. The first is suicide within the first year or so of the coverage’s start. The second is if the person insured did not personally apply for this type of insurance coverage. to find out what the requirements are, each policy must be read carefully. Any questions should be asked and answered before choosing and completing the agreement. BOLA TANGKAS