Life Cover or Life Insurance is a policy that will pay out a set amount to the insured’s beneficiary or estate to ensure the insured’s family is financially stable in the event of death.
Over 70 percent of South Africans do not have life cover in place. This is partly due to a lack of financial education and partly due to the assumption that life cover is too expensive.
Options available under the life insurance section are #Life Cover, #Disability Cover and #Critical Illness Cover. Depending on your requirements, you could have a combination of these or a singular need.
Life Cover - Will be a lump sum payment to your beneficiaries or estate in the event of your death. You can choose whole Life Cover, or a term policy (often used when having to insure an outstanding mortgage which has a set term).
Could be in the form of a lump sum that is paid out in the event of you becoming permanently disabled and unable to perform your current job, or in the form of monthly payments (income protection) which will pay out in the case of temporary or permanent disability, depending on the product selected. Disability Cover is linked to your ability to perform your own job or a similar job or not being able to work at all.
Protecting your income and financial security is an essential part of financial planning; to have your income protected in cases of severe illness, injury or disability is your responsibility. This cover assists the insured with an income if the insured is no longer able to perform the duties of their job.
The amount of your monthly pay-out depends on the percentage of your salary that you choose to insure, as well as the severity of your illness or disability and the impact that it has on your ability to generate an income.
Critical illness insurance, otherwise known as critical illness cover or a dread disease policy, is an insurance product in which the insurer is contracted to typically make a lump sum cash payment if the policyholder is diagnosed with one of the specific illnesses on a predetermined list as part of an insurance policy.