What Is a Life Insurance Policy and do I really need one?
You may have heard about household content insurance or car insurance but what about life insurance? Trying to keep up with the varying policies is a bit much, but what is a life insurance policy?
Not only that but why should you insure your life? Figuring out how life insurance works isn’t too difficult.
Once you understand the policy and terms, then decide whether or not you need one.
What is a life insurance policy?
Briefly, a life insurance policy pays out a death benefit, as a cash amount, when you pass away. Your family, or whoever else you nominated, receive the money which goes a long way to easing financial stress in a stressful time.
Thinking about death is not pleasant, especially when you are young and healthy. But, like paying taxes, death is an event we have no control over.
Do You Need It?
Do you have a family or someone that depends on you for financial support? Do you have bills to pay every month, an expensive bond or a car to pay off? Do you have school fees to pay? You do! Then you need life insurance and all the benefits it carries.
Saying “I do” means you need to look closely at securing your future. Go online and get free Life Insurance quotes, then decide on the cover that suits you. Or speak to brokers and different insurers to determine the benefits and policy you can afford
What is a life insurance policy and the two main types
Term life insurance and Whole life insurance are the two main types of policies. Term life insurance will cover you for an agreed period. Whereas whole life insurance covers you until the day you pass away. This seems to be the most popular option in South Africa.
If you still feel hesitant about taking out life insurance, speak to a financial planner or broker. Talk to family and friends who have life insurance policies, find out what made them choose the policies they have.
It is better to spend the money now than have to worry about your or your loved ones’ future in the event of your death or being unable to earn an income.
To get a FREE Life Insurance quote, please fill in the form on this page.
Don’t leave it too late to decide, the clock is ticking and with it the future of your family or dependent. Time and tide wait for no man.
All info was correct at time of publishing