What is an Insurance Quote?
An insurance quote is an estimate of what your premium will be depending on how much cover you need. A Life Insurance quote is broken down into several benefits, such as, life cover, disability cover and income protection.
The quotation will provide insight into what you could be covered for and if there are exclusions and waiting periods. The Insurance Provider will draft an estimate based on your needs using various contributing factors.
What factors affect my Insurance Quote?
There are a few important factors that determine the premium amount on a life insurance quote. These important factors would be your smoker status, age, family history and gender and Income.
To add onto these factors if you are not vaccinated, your quote premium could increase and this would be due to loadings on your benefit.
Let us take a look at the example below but now we see the difference when the smoker status of the client changes.
Non Smoker
Smoker
Life cover R1,5 million
Life cover R1,5 million
R130 per month
R260 per month
How do I go about getting quotes?
- The Salesman or Telemarketer – This is a quote directly from the provider. This is not a good way as you are speaking to a salesman and only get a quote from one product provider. The person you are speaking to may also be persuasive or even forceful in trying to sell you cover. Be weary when going this route.
- Third Party Comparative Companies – These are companies which do a comparison on your behalf, for example, Hippo. It is important to note that these companies often use automated fields to compare quotes. Meaning they don’t necessarily take your individual situation and needs and the specific product benefits into account. This is at least better than the first option as you are getting quotes from a few providers.
- Independent Financial Planner – This is likely the best option. Someone that is independent is able to be objective when comparing different products. A financial planner will also ensure that the comparative quotes obtained are aligned with your needs. They will help you navigate the fine print of each quote, as well as, the pros and cons of each. Some advisors charge an hourly fee for this service, and others earn their fees from the provider.
Comparing quotes is an important step in deciding which insurer you should choose. Premiums may differ from one provider to another, as well as, the cover amount and any exclusions and waiting periods.
If you have any queries please speak to an independent financial planner to assist you in getting the best quotes for you! Here at Growmatter, we want the best for our clients and we are committed to working together.
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The information provided is not intended to address the specific circumstances of an individual and is for information purposes. Should you require financial advice please contact us at info@growmatter.co.za
