We recently launched two new financial products on the Fincheck platform! This is really exciting because we can now help people make better financial decisions over a wider selection of finanncial products. We're going to start with a Life Insurance education series and follow that with a Funeral Insurance education series.
Help us to spread the helpful information to South Africans by sharing this article with your friends! Let's get started on the basics of Life Insurance!
What is Life Insurance?
Life insurance is a product many of us try to ignore thinking about for as long as possible because of the unpleasant connotations around it. But as it is designed as a means of provision and support for your family in case of loss, there are few insurance products as important.
Life insurance, or life cover, is an insurance product that includes a cash payout that supports your family (wife, children and other family members where applicable) financially when something happens to you. Ideally, the provision helps the family maintain the same lifestyle and pays all outstanding debts.
Is Life Insurance really necessary?
Whether you believe you're going to 120 or not, it's important to consider this product if your savings and investments are unable to meet the needs of your dependents. If you're serious about having peace of mind now, and in the future for the welfare of your family members, you probably need life insurance.
If others are dependent on your income or salary you need life cover to provide for them once you are gone. It's not about the expense on your budget sheet now, but about the future of those you care about.
When do you get life insurance?
As we mentioned above, you probably need life cover if others are dependent on you. This includes long-term relationships, getting engaged, married or creating the future generation of South Africans (a.k.a getting babies). Most of the time, these are milestones in life and beg a bigger sense of responsibility when it comes to finances.
A part of this responsibility is making sure those you care about are taken care of when something happens to you (whether it's passing away or other another form of work incapability).
Still a little bit unsure about the type of decisions that should lead to getting life over? Here are a couple of defining moments to consider:
- Relationships where others are dependent on your income
- Buying a house for you and your dependents to live in (who wants to move out while mourning a loved one?)
- The future of your children (should their education stop when you're out of the picture?)
We know the options for life insurance is vast and each person’s situation is different. So, we want to help you make the right choice. If you are looking for a life insurance partner, we encourage you to make use of our life insurance comparison page to apply & then compare the different life insurance partners and their basic options.
To your better financial future!