What is life insurance and what are the benefits? |05 September 2020
Safeguarding your family’s future is a must, particularly if you are the only or primary breadwinner in the household. Life insurance provides a protective financial cover for you and your loved ones in the event of death or disability. It keeps your family safe and sound even when you are not around by ensuring that your dear ones get financial support to clear an outstanding loan or to adjust their lifestyle.
- Peace of mind: Having life insurance provides the ultimate peace of mind. This is because in the event of the insured’s death, they know their family and loved ones will have a financial safety net. All of us have some financial liabilities, but an adequate life insurance cover ensures that your loved ones will have some financial stability if you die when the policy is in force.
- Financial security: A mortgage or credit life insurance can help to protect your financial investment by clearing your outstanding loan with a bank should an unexpected event happen to you. Your family can have peace of mind knowing that they won’t be burdened with the loan and their home or investment is safe at a difficult time.
- Save for your child’s future: Life insurance for your children is perfect for building a sum of money for them to give them the best possible start in their adult life. The investment can be used to fund a course or training, as a deposit for a car or a house or anything they wish for when they grow up. For instance, a 30-year old parent who takes a Junior Life policy with H Savy Insurance (HIS) for a sum of R50,000 for their 5-year-old child can pay around R350 per month. The policy will mature when the child turns 18.
- Not as expensive as you think: Many believe that life insurance is too expensive or complicated to consider. In actuality, life insurance is not that expensive if you lock in low premium rates while you’re young. For example, in case of myLife Plans from H Savy Insurance, a person between the ages of 20-30 years assuring a sum of R50,000 for 20 years will pay around R250 per month. Whereas for myLegacy Plans a person from 50 years will pay around R500 for a sum assured of R50,000. Ultimately you are taking steps to protect yourself and your family against risks such death, illness or accident which can lead to disability and you cannot put a price on such risks.
- Retirement planning: Retirement is supposed to be this beautiful time when you are free from work pressures and life is peaceful. It can be all those things and much more, if you have a pension/monthly income. Life insurance allows you to save some extra cash for your golden years without compromising on your lifestyle. And should any unforeseen event happen to you during retirement, you can rest assured that you have some extra cash for a medical treatment or for your funeral.
- It can build cash value: Your policy can accumulate cash value over time, which can be taken as a loan for any purpose you wish. This can be a good option as the borrowing rates tend to be competitive and it’s not dependent on credit checks or other restrictions. Keep in mind, though, you’re ultimately responsible for repaying any loan as set out, to make sure your beneficiary receives the death benefit you had envisioned for them. With all H Savy Insurance policies, the insured is eligible for a loan after three years of continuous contributions.
Anyone can benefit from having life insurance, but it’s especially helpful if:
- You have kids. If you’re caring for kids, consider the cost of raising them and getting them through the school years. Your life insurance payout can cover living expenses and all the other expenses that comes with growing up.
- You have debts. If you have debt, it won’t go away when you die. Your family will be responsible for any loan you leave behind. Consider getting a mortgage or credit life insurance to cover all your debt and remove that burden from your family.
- You take care of others. If you’re the breadwinner in your household, loss of your income could be devastating. A life insurance policy can ensure that your loved ones are taken care of if you die or become disabled.
For more information or clarification about life insurance, please contact H Savy Insurance on 4280400.