WHY IS LIFE INSURANCE SO IMPORTANT?
Life insurance is an important part of your long-term financial strategy because it allows you to plan for the future while paying low premiums. It’s also the financially responsible thing to do to ensure that your loved ones are properly cared for after you leave.
Purchasing life insurance helps ensure your loved ones’ financial security in the future.
A life insurance policy is more than just a product that provides benefits to your family in the event of your death. It’s also a safety net that gives you peace of mind, knowing that if you suffer an injury or disease that prevents you from working, your family will be taken care of as well.
You know the cost of your monthly life, disability, and dread disease cover premiums, allowing you to make life insurance a permanent part of your budget. The benefits, usually in the form of a lump sum payment, will be paid to you in the event of disability or dread disease, and to those named as beneficiaries in your policy in the events of your death.
What are the advantages of having life insurance?
- Life insurance policy can help you ensure that your loved ones have secure financial future after you die.
- The proceeds from your life insurance policy can be used to cover your final expenses. Funeral or cremation costs, medical bills not covered by health insurance, and other unpaid obligations may be included.
- Life insurance benefits can help replace your income. This means that your beneficiaries could use the funds to help cover essential expenses like home loan or university tuition for your children. It can be used to repay debt, such as credit card or a car loan.
- Some people get life insurance with intentions of leaving the death benefit to their loved ones as inheritance.
- Life insurance policies can also be created with your favorite charity as a named beneficiary. This can help ensure your philanthropic goals are met after your death, and that benefits are distributed to your preferred charity.
What are the advantages of having life insurance?
- Monthly premiums for life: life insurance its not necessary cheap if you want a higher payout. Therefore it is important to choose a level of cover that is affordable in terms of your budget.
- No tax benefits: unlike retirement annuity, your life insurance premiums are no tax deductible. You will have to pay for it with your take home income. However this is unavoidable and even this con does not outweigh the benefits of cover for most people who understand the importance of life cover.
- Annual increase necessary: Many consumers believe that the premium increase annually, like the cost of most other products or service rise annually due to inflation. However, this is not necessarily true. You can choose not to have annual increases in the premium. Similarly, the payout will not increase annually. Eventually your super cheap premium will also mean a super low payout if you do not opt for annual increase in line with the inflation rate.
What is the best way to get life insurance quotes in South Africa?
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