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5 Common Questions about Life Insurance Policies

May 31st, 2012 | Posted by Editor in Articles

To take the hassle out of finding the right policy for you, here is a list of five commonly asked questions by people who are taking out life insurance.

1. What Types of Policies are available?

There are a number of different types of life insurance policies that are offered by many insurance companies. Your choice of life insurance options includes term life insurance, income protection, total and permanent disablement insurance and trauma insurance. What you want from your insurance will ultimately decide which insurance option you choose. Term life insurance is the most common form of life insurance, providing customers with a lump sum amount that is paid out in the event of death. Income protection, trauma insurance and total and permanent disability insurance are often taken out as a combined policy with a term life insurance plan.

2. Will I be locked in to a contract?

Most life insurance policies will not require you to be locked in to a contract, meaning you are free to cancel your policy at any time, without incurring any penalties. This may vary between insurance providers, so it is important to check before signing any documents.

3. Do I need to undergo a Medical Examination before I will be approved?

In many cases you will not need to undergo any medical examinations to successfully obtain a life insurance policy. Medical examinations are, however, highly dependent on the amount for which you wish to be covered and your age, so be sure to take this into consideration when applying for a new life insurance policy.

4. Will there be repercussions with my tax payments?

Implications with tax will be highly dependent upon what policy you decide to use and what insurance company you choose, so it is vitally important to ask these questions before signing any documents. Income protection policies, however, are fully tax deductible.

5. How do I choose the right type of Life Insurance for me?

With the vast number of life insurance options available to you, it is often difficult to decide which is the best option, for you and your family. As mentioned previously, term life insurance is the most common life insurance policy. Term life insurance only covers you and your family in the event of death, however, other policies will provide you with assistance should you become ill or injured throughout the course of your life. If you are unsure about which policy you require, talk to a professional at Lifebroker who will be able to assist you with making the right choice. Deciding which life insurance policy is right for you can be a very daunting task. Lifebroker has taken the stress out of finding the best policy for you and your family, by providing you with the knowledge needed to make the right choice. There are many questions that you should be asking, in order to find the right policy, such as what types of policies are available, what payouts can you expect, what are you covered for and any questions you may have about life insurance premium information.

Author Info:

This article was provided by John Blair. John has worked in life assurance for over 7 years and has helped compile the top 5 most asked questions during his time as a life insurer.

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