Remember This When Thinking About Life Insurance
This is true about life insurance:
Question: what will you leave behind when you die? Answer: grief and debt.
There is not a lot you can do about the grief the people nearest and dearest to you will suffer when you die, especially if you die unexpectedly in an accident.
There is, however, a lot you can do to lessen or completely eliminate the other unpleasant after-effect of your death: debt.
More About Life Insurance
Here is a list of the debt items that most of the bereaved and the estate managers face when someone dies:
- Funeral expenses
- Direct medical costs (hospital, ambulance)
- Tax bill
- Property mortgage
- Car settlement amount
- Retail accounts
- Municipal accounts
- Personal loans
- Debit orders for medical aid, education, internet, phone, etc.
Some people die with a lot more debt than this but you get the general idea. Everyone’s debt list is different, but everyone dies owing something somewhere.
What to do about this?
If you are thinking about life life insurance then getting a comprehensive life cover policy is the surest way to make sure that your debts are covered when you die. Add up all your debt, together with an amount adding up to six months worth of your usual expenditure, and add 10 percent on top of that. This will give you the amount of life cover you should buy.
(The six months’ expenditure amount is to look after your dependants for six months after they lose you. No, you are not obliged to look after them for all eternity with your life insurance policy. Your assets should help to do that. The 10 percent is to pay estate costs.)
What else do you need?
Unfortunately life is not this simple. You might not just drop dead and leave behind your grieving relatives. Instead you might lose your job, become disabled or fall ill so that you are unable to earn money for months on end.
Fortunately you can piggyback all sorts of excellent, affordable products on the back of your whole life insurance policy. These include disability cover, loss of earnings insurance and chronic illness benefits. You can even cover your funeral costs specifically so that the amount will be paid out rapidly following your death.
Get a life insurance quote now by completing the form on this page. Be safe so that your family can be less troubled should anything happen to you.
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All info was correct at time of publishing