life Insurance

Why Life Insurance Matters

People’s needs vary according to their individual circumstances and life stages. Whether to secure a financial investment in a home or business, or wanting to leave a legacy for their children to secure their financial future, a Life Insurance policy will ensure that your family is taken care of in the event of illness or death of a breadwinner.

Many people postpone buying life insurance cover, either because they are unsure about what kind of policy they should get, or because they simply don’t want to contemplate the possibility that they might not be around to take care of their loved ones.

But leaving the financial security of your family up to fate is a gamble that no one should take.

Life insurance cover is your financial shield to safeguard your family’s future, and will:

Provide financial security and a guaranteed income for your family in the event of premature illness or death

Cover debts like credit cards, mortgage and education

Accumulate a valuable investment over time

Provide for you and your family in the event of illness

Protect your family’s valuable assets

How Does Life Insurance Work?

Life insurance is essential in order to make provision for financial needs that will arise in the future, and will ensure that sufficient funds are available in the right hands at the time.

Many parents wish to make sure that there is adequate financial provision for their family in the event that either dies unexpectedly. And, financial planning is essential to ensure that assets such as family businesses are bequeathed to their appointed heirs without difficulty.

Life insurance therefore ensure protection against the financial loss that would arise as a result of the unexpected death of a family breadwinner. The proceeds of the policy go directly to the beneficiary appointed by the insured, which thereby safeguards the insured’s dependent’s from any financial impact. The death benefit is paid out in full by the insurer in the event of the insured’s death, provided monthly premium payments have been made by the insured.

Term Assurance vs Whole Of Life Insurance

Term Assurance

A term assurance policy provides cover for a fixed policy term, from a minimum of 5 years to a maximum of 35 years. Term assurance does not include an investment or saving element, but functions solely as an insurance policy. A monthly or yearly premium payment is payable for the duration of the policy term.

Whole of Life plan

With a Whole of Life plan the term remains open-ended, and therefore continues for the lifetime of the insured. The sum assured is paid out in the event of the death of the insured. These plans generally do incorporate an investment element, which provide extra cash value in addition to cover of the cost of future benefits, for the duration of the life of the insured. Premiums can be be paid monthly, quarterly, half yearly or yearly.

Optional Benefit Additions

Critical Illness benefits – provides a lump sum payment in the event of diagnosis of a specified critical illness

Permanent and total disability – this option pays out a lump sum payment in the event of complete disablement

Dismemberment – a benefit that covers accidental loss of sight or limb through provision of a monthly payout

Hospitalisation – an optional benefit to cover a stay in hospital of 4 or more consecutive days

Accidental death – an additional payment over and above the sum insured

Family Income – this benefit pays out monthly payments to the family of the insured for a pre-selected period

Waiver of premium benefit – a benefit that ensures cover continues without premiums being paid, in the event that the insured is incapacitated by accidental illness or accident

Premiums are determined by age, current state of health, family history, level of benefits and the length of cover required.

Our qualified advisers are here to help. Our partnership with leading insurance partners ensures that we are able to offer competitive, affordable solutions to exactly suit your needs.