What is life insurance?Life insurance is a policy that one buy from an insurance provider, agree to specific terms and conditions, signing it off on a contract and you have cover for a particular time or the rest of your life. The policy contains an agreed amount that will be paid to your beneficiary the day you die. It is also known as a death benefit for your family. In other words, if you should die due to an accident, your family can claim to receive the lump sum that you have taken out to take care of them the day you are gone.
|
Why is it important?
If you should die tomorrow, will your family be able to get through each month without your income? Will they be able the settle all the expenses they used to with your income? Will there be enough money to pay school fees? Will there be enough money to buy daily things like food? It is the significant reason why you should buy life insurance in South Africa for your family. The money they will receive from your life policy will help them to survive each month and find a way to get back on their feet before the money you left them run out. |
Types Of Life Insurance
There are basically two types of life cover, read more about it below:
Term Life
Term life is a policy you take out to cover you and your family for a specific term; it can be anything between five and thirty years.
|
Whole Life
Whole life is a policy you take out to cover you and your family for your entire life, even if you reach the age of a hundred.
|
Comparison
Whole life is more expensive than term life, because it covers you your entire life and your cover amount is higher than term life offers.
|
What can the money be used for?
|
When the company has paid out the claim to the beneficiary, the person can do with the money as they please. They can use it for daily needs, vacationing, mortgage, medical bills, funeral bills, education, entrepreneurship and so forth. It is their money, and it was there to make up for monthly expenses, but it can be paid upfront, and you do not have to worry about it anymore.
So, getting life insurance is not a bad idea, if interested you can visit Advance4Life here on this link for more information and a way to get quotes. |
About Us
This blog is all about life insurance and how important it is to take care of you loved ones financially. They should be your first priority and on a financial basis and the way things are in South Africa right now, it might not be a bad idea of getting life cover today.