Many people are familiar with different types of insurance cover, such as home insurance, car insurance, business insurance and travel insurance. Life cover in South Africa will give you the cover to offer substantial financial protection to your family in the event of your death.
Before you get a life insurance policy, you should get a clear understanding of what you want to be covered. For example, do you want to leave a legacy? Or do you want to make sure that funeral costs are covered or do you want to make sure that your child’s education costs are covered? If you just want to make sure your funeral costs are covered, getting funeral insurance could be your best option.
Term life insurance
Term life insurance is a policy that lasts for a fixed period. If you live longer than the policy term, there is no payout. This type of insurance is often cheaper, and as a result, more people sign up for it.
Whole life insurance
This life cover in South Africa is designed to last as long as you do. When you pass away, the policy pays out a lump sum to your beneficiaries. You are required to pay a monthly premium. With life cover, the more protection your policy offers, the higher your premiums.
If you want to have a life insurance policy in order to provide your family with a regular income, you should calculate your current expenditure and consider the effects of inflation.
Keep in mind, the higher your risk, the higher your premium.