Life Insurance has proven to be quite necessary and living without it has proven to be a big gamble for most people. Most people have debts and families who rely on them and would struggle financially were they not there to provide for them. You can ease your mind and avoid these worries with the right life Insurance. But before you begin looking, take a moment to know more about the different types of life insurance policies so that you can make an informed decision when the right time comes to purchase a policy
In South Africa, there are three main types of life insurance.
The cheapest insurance would be the Term Life Insurance. The coverage is for a time frame and can also be linked to a certain debt, such as a home loan but as the debt increases so will the cost of the premium. Payouts in a term policy can be used any way if not used for a certain debt. You can renew the policy at the end but the cost will go up.
If you want to secure financial security for your family in the event of your death, then whole life insurance may be a good choice. Whole life insurance is synonymous with permanent insurance which covers you for as long as you pay the premiums. While these types never need to be renewed, one benefit is the premiums remain the same, no matter what age you are. While whole life insurance policies usually cost more then an equal amount of term insurance, due to an average premium cost. Some policies will even include a savings option that you can borrow against if the need arises
Universal life insurance is also permanent insurance that does not renew and premiums never change. Unlike whole life policies, universal life insurance incorporates other financial services such as savings and investment plans. The policy can be surrendered to redeem the accumulated savings. Policy owners can choose to add another person to the policy, manage their investments or use the savings to cover premium payments. All of this flexibility makes universal life the most expensive cover option.
South Africa is one among the two countries in the world which is offering an insurance package to the AIDS patients. The equated payments for this type of insurances will be more than the normal payments and the insurer also wants the insured to undergo some antiretroviral treatment.
If you want to have a set of policies for you and your family, the best way is to ask yourself a set of 3 questions.
Premium payments! What are they? and what if i miss one?
What is the death benefit pay out for this life insurance coverage? Will it meet my family's needs?
The question is: will this policy be the best one to serve my needs? What sort of coverage will it provide me?
Life insurance is an important component of your family's financial protection plan. Purchase a good policy and you will be able to protect your family from financial ruin if anything should happen to you. Your loved ones will be able to maintain their lifestyle even if you are no longer there to support them. Both you and your family will have peace of mind if you get a good life insurance policy.
In South Africa, there are three main types of life insurance.
The cheapest insurance would be the Term Life Insurance. The coverage is for a time frame and can also be linked to a certain debt, such as a home loan but as the debt increases so will the cost of the premium. Payouts in a term policy can be used any way if not used for a certain debt. You can renew the policy at the end but the cost will go up.
If you want to secure financial security for your family in the event of your death, then whole life insurance may be a good choice. Whole life insurance is synonymous with permanent insurance which covers you for as long as you pay the premiums. While these types never need to be renewed, one benefit is the premiums remain the same, no matter what age you are. While whole life insurance policies usually cost more then an equal amount of term insurance, due to an average premium cost. Some policies will even include a savings option that you can borrow against if the need arises
Universal life insurance is also permanent insurance that does not renew and premiums never change. Unlike whole life policies, universal life insurance incorporates other financial services such as savings and investment plans. The policy can be surrendered to redeem the accumulated savings. Policy owners can choose to add another person to the policy, manage their investments or use the savings to cover premium payments. All of this flexibility makes universal life the most expensive cover option.
South Africa is one among the two countries in the world which is offering an insurance package to the AIDS patients. The equated payments for this type of insurances will be more than the normal payments and the insurer also wants the insured to undergo some antiretroviral treatment.
If you want to have a set of policies for you and your family, the best way is to ask yourself a set of 3 questions.
Premium payments! What are they? and what if i miss one?
What is the death benefit pay out for this life insurance coverage? Will it meet my family's needs?
The question is: will this policy be the best one to serve my needs? What sort of coverage will it provide me?
Life insurance is an important component of your family's financial protection plan. Purchase a good policy and you will be able to protect your family from financial ruin if anything should happen to you. Your loved ones will be able to maintain their lifestyle even if you are no longer there to support them. Both you and your family will have peace of mind if you get a good life insurance policy.
About the Author:
Tom Martens is the content syndication coordinator at Lifeinsurance-Southafrica.co.za South Aricas leading Life Insurance and Life Cover portal.
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