Why Life Insurance is Essential for all South Africans

Thousands of South Africans are robbed, raped and murdered each year, this is why life insurance is important. No, actually it is essential.

In a country that has the 2nd highest murder rate in the world. You begin to understand that life insurance is a valuable tool. If you are a breadwinner and die, would your family be financially safe?

A single person with no dependents can get by on a small life insurance policy. But you can’t say the same for someone who has family members relying on them for income.

Reasons Why Life Insurance is Essential

For young people, it makes financial sense to have life insurance as it is a financial asset. It can stand you in good stead when applying for a loan. Many policies have cash value too, and this means creditors can’t get it.


Your Tomorrows Aren’t Safe

Why Life Insurance is Essential

  • In South Africa particularly, it is important to get life insurance sooner rather than later. The reason for this is that you cannot guarantee your tomorrow. Your family can’t get a regular income once you’re no longer there without life insurance. Invest in life insurance while you’re still young as it works out to be far more affordable, and becomes more expensive as you age.



  • Life Insurance isn’t just essential for individuals either. What about the business you run? Life insurance can protect a business from financial loss and liabilities with the death of the firm owner. Life insurance can be invaluable in maintaining the business you started.


  • Another reason why life insurance is essential is that funerals in South Africa are expensive. The basic funeral begins in the region of R8 000. At a traumatic time, your life insurance can cover your funeral expenses without putting any financial pressure on your family.


You could be Retrenched

Another reason why life insurance is vital is that you could get retrenched. Many people think that life insurance provided by their workplace is an excellent benefit, and it is. But South Africa has massive unemployment, high levels of poverty and high birth rates. There just aren’t enough jobs for the large populations.

In South Africa, without any confidence in the job market, you need life insurance. Even though you may have employer life insurance now, you can’t be sure you’ll have a job next year. You need to purchase additional coverage to prepare yourself for an uncertain job market.

If you don’t have life insurance, your family may resort to looking at your retirement savings for financial support. It’s not a good idea to start tampering with funds specifically set aside for retirement.  If you pass away, your spouse may have been relying on those savings for their retirement.

Does Your Life Insurance offer Dread Disease Cover?

Life insurance isn’t only necessary for when you pass away. Have you considered the horror of an incurable illness or a broken back or neck putting you out of work for the rest of your life? The consequences are too unbearable even to contemplate. Look for life insurance that provides comprehensive life cover.

Consumers need to know what cover and what they need. They shouldn’t allow consultants at the insurance company to sway them to make certain decisions entirely. Consumers need to educate themselves as to what type of cover they need.

More People getting Cancer

Life cover is essential, but it won’t help you when you find yourself unable to work because of a disability. Without the right cover, you can find yourself in deep financial trouble. What about dread diseases? The statistics for cancer are mind blowing are millions of people die each year in the world because of this disease.

The Cancer Association of South Africa tells us that some 100 000 South Africans each year get cancer. You’d be wise to ask, when researching life insurance companies, does the company you’re looking at cover cancer? Mercifully, life insurance policies general cover cancer, they cover accidental death and death from natural causes. You just need to bear in mind that some insurance providers will only cover death from cancer if you didn’t have cancer at the time you took out your life insurance policy.

Young People aren’t Invincible

In South Africa, life insurance isn’t always a must-have by those under the age of 40 who are healthy. However, it is wise to take out life insurance when you’re young and healthy. It’s because while cancer and stroke are with older people, and younger people are prone to these diseases too. If you have these illnesses and you still qualify for cover, certain exclusions for these diseases may exist.

Be Safe and Sound

Apart from life cover, there are other kinds of insurance to think about. These types of insurance can offer additional support if the policyholder is must stop working after suffering certain events. Some of these are income safety- and permanent disability insurance.

Take the time to research the different life insurance options available.

It is important for South Africans to be honest with their insurance company and disclose their full medical history. It’s because factors such as whether you have family who has cancer can affect your cover.

Add a Carefree Attitude to your Life

The amount of life cover you need will vary from one person to the next. The cover depends on many things, some of which may require the help of an expert insurance agent. By choosing the right company and the right cover you are happy because life becomes that much more carefree. Never ask yourself why life insurance? Because many things can happen.


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All info was correct at time of publishing