Life insurance is needed if a person wants to provide survivors with sufficient funds, in the event of the insured’s premature death. Because insurance monies are paid in a lump sum, they can be used to addresses not only the immediate expenses involved with estate settlement and funeral costs, but they can also assist with the longer term needs of survivor. A life insurance policy allows you to make provisions for your dependents. Some life insurance policies also offer provisions in the event you are disabled, and some offer a retirement annuity.
In South Africa, you will find a wide variety of life coverage. This includes term life insurance, whole life insurance, and even Universal coverage.
Term life insurance, is just what it says it is. It’s life insurance coverage for a specific, predetermined term of time. This type of coverage is perfect if you simply want life coverage for a limited period. For example, perhaps you only want life coverage during the time you are paying off a house mortgage. One of the advantages of term life insurance is that it is relatively inexpensive. However, it does not have a cash value or investment. So, when the agreed upon time has passed, the coverage simply ceases to exist.
Whole life insurance coverage is a little different, and far more comprehensive. With this type of coverage, a payout is guaranteed. It expires only upon the policyholder’s death, or when the policy is surrendered. There is no need to worry about the possibility of becoming uninsurable at some point in your life. The insurance company invests the premium you pay, and a policyholder can borrow against the policy as soon as it has built up a cash value. The cost for whole life insurance is generally higher than a term life insurance policy, however.
In a Universal Life Coverage plan, you will find an investment component has been included. Cash value is credited to premium payments above the cost of the insurance, and each month you receive interest on that cash value. Growth rate is not guaranteed, but there does exist a possibility for rapid growth.
Some life insurance companies in South Africa include 1LifeDirect. This company has only been in existence a relatively short span of time, but it has made a big impact. It provides customers unique product offerings, as well as low monthly premiums. Because they use the direct sales model, the middleman is cut out. This allows 1LifeDirect to save customers big bucks on their life insurance premiums. Discovery Life Insurance takes its expertise from the medical aid industry. This generates excellent insurance products, coupled with a wonderful loyalty program.
Liberty Life Insurance is a big name in the insurance industry. They offer three premium options that can suit any need. RMB Insurance offers one of the broadest assortments of products on the market, and Sanlam Insurance provides both life insurance for personal coverage, and group life insurance.