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| Q: |
How much does life insurance coverage cost? |
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Life insurance plans differ depending on several variables: your age, gender, whether you smoke or have existing medical conditions and the amount of insurance coverage you want to purchase. Other factors that can affect your life insurance plan are your occupation and lifestyle. |
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| Q: |
How do I pay for my life insurance plan? |
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Insurance companies usually offer various means in which to pay for your life insurance plan. Direct debit and credit card are common payment methods. |
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| Q: |
Why buy life insurance coverage? |
| A: |
A life insurance policy is purchased to care for loved ones after the death of the policyholder. The life insurance payout is generally intended to alleviate financial burdens such as the following: |
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I) Paying funeral expenses
II) Mortgage protection
III) Eliminating personal and family debts
IV) Replacing lost income
VI) Paying off outstanding taxes |
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| Q: |
Do I need to get mortgage life insurance coverage? |
| A: |
Generally, banks or financers insist that you have some form of life insurance coverage or income protection insurance. This type of insurance plan will cover your mortgage payments if you become ill or disabled. The mortgage life insurance will clear your mortgage debt in the event of your death. |
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| Q: |
What will happen if I can’t pay my life insurance premiums? |
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If you stop paying your life insurance premiums, your coverage will cease. You will not be entitled to any refunds on money you have paid in. It is important to budget your life insurance payments realistically before purchasing coverage so this will not happen. |
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| Q: |
Will my life insurance premiums go up? |
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Your life insurance premiums and coverage will increase each year with your age and indexation. Indexation is the process of keeping the amount of coverage relevant to the cost of living. |
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| Q: |
If I purchase variable life insurance, will I need to supply evidence of my health? |
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Yes, the underwriter will base his decisions on the answers you supply. Make sure that you disclose any medical conditions. If you supply misleading information the insurance company will terminate your policy for fraud. |
