Getting the Best Life insurance Benefits in South Africa

The primary purpose of a life insurance policy is for the policyholder to have the peace of mind knowing that his/her loved ones are well off when he/she dies. Death is a part of life, but at best, you can prepare for it. Life insurance policy offers both the policyholder and the beneficiary the opportunity to prepare for the undesirable event. A life insurance policy offers both the policyholder and beneficiaries several life insurance benefits and advantages including:

Death benefit cover – Life Insurance Benefits

When a policyholder dies, the beneficiary gets the death benefit cover. The death benefit cover can vary in amount depending on the desired amount that the policyholder settled for.

You can use the death benefit payout for several things. Including paying for school fees, paying off a bond, buying groceries and as the capital for other high return investments.

Life Insurance BenefitsCharitable donations

Since a charity can also be a beneficiary, charitable organisations can receive a death cover and use it to pay for its expenses.

It will ease the financial burden of the charity and ensure that its day to day operations continue to run smoothly.

The death benefit cover will give the policyholder the opportunity to extend his/her legacy beyond death.

Burial costs – Life Insurance Benefits

You can’t predict death, at least in most cases. Without any immediate and readily available savings, it will be difficult to give someone a dignified send-off.

A death benefit compensation can be used to settle funeral bills and pay for expenses such as buying the coffin and food, cremation costs and other debts.

Tax-free inheritance

The beneficiary can use death cover as a source of tax-free inheritance for the named beneficiary.

Flexibility – Life Insurance Benefits

Many life insurance policies are flexible for the policyholder. It allows the policyholder to pay premiums that he/she is comfortable with and still have the opportunity to a settle for a reasonable amount of death cover for his/her beneficiary.

The policyholder can increase or decrease his/her premiums and death cover payout to suit his financial position.

Accidental disability cover

Although a life insurance is to cover a policyholder’s beneficiary, it can also benefit the policyholder.

Some policies allow an accidental disability cover. It means that in the unfortunate event that the policyholder is accidentally disabled, his/her life insurance cover will be used to take care of him/her.

Cashback benefit – Life Insurance Benefits

Some reputable companies offer policyholders a cash back benefit if they consistently pay their premiums for a set period.

For example, a policyholder can be given a cashback worth 5 to 6 months’ premiums for every five years that he/she pays his/her monthly premiums and does not claim.

Access to loan

When a policyholder’s life insurance cash value accumulates to a significant amount. He/she can access it through a policy loan and use it in the case of emergencies or other needs.

Future insurability

A policyholder will continue to have the cover, even in times of bad health, as long as he/she pays his/her premiums.


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All info was correct at time of publishing