You can apply for life assurance for yourself or for joint cover. If you choose joint cover the policy only pays out once, on the first occurrence of death or terminal illness.
Depending on what type of plan you opt for, the benefit can be taken as either a cash lump sum, a regular income, or a combination of both and can be used for any purpose.
Before considering any life insurance plan it is important to investigate the company offering coverage.
First, a company without adequate reserves to pay claims should be avoided. Consider as your minimum standard that the insurance company should have at least one of the top 3 ratings for financial strength, or claims paying ability.
Never cancel existing coverage until the replacing policy has been issued and you have verification of this!
Always photocopy your applications and any form bearing your signature. It is a good practice to keep these copies for seven years after canceling a policy.
Complete the forms thoroughly and if some question doesn't apply write "Not Applicable". Application forms are frequently returned due to incomplete information. Make sure you know what you are applying for by obtaining a complete written proposal first.
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