Four things to think about when buying life insurance

1. Be honest about your medical history
Most claims are successful, but it’s important to give your insurer all the information they ask for. When you make a claim, they will check your medical history. If you didn’t answer truthfully or accurately in your application, or didn’t disclose something, they might not pay out.
2. Read the small print
Make sure you know exactly what is and isn’t covered. Be aware that definitions and exclusions (what isn’t covered) can vary between different insurers. If you see something you don’t understand, ask your financial adviser.
3. Can you switch to a better deal?
As you get older or develop medical problems, you might find it’s cheaper to stick with a policy you bought when you were younger.
If you decide to switch, make sure you don’t cancel your existing policy until the replacement policy is fully set up and you have made the first monthly payment. When you’ve cancelled a policy, you can’t change your mind.
4. Consider a waiver
With some insurance policies, you can ask for extra features to be included. For example, if you pay a bit extra to add a ‘waiver of premium’ to your policy – your premiums will be paid automatically if you can no longer work due to accident or illness (and in some cases retrenchment). This is to protect against your policy being cancelled if you miss a monthly payment.