The primary function of life insurance is to make sure that your loved are financially secure when you’re no longer there to provide for them yourself. Sounds simple, right? Well yes… and no.
Here at Old Mutual iWYZE Life Insurance, we often find that most people have burning questions when it comes to choosing what type of life insurance to buy for their needs, how much cover they need, or whether or they even need it at all.
In this article we delve a little deeper into the things you should consider before deciding to get a life insurance quote.
Start by asking yourself 4 questions:
If you’re still unsure whether or not you actually need to buy life insurance, consider what it would mean to your loved ones if you should pass away, from a financial point of view. Ask yourself:
- Will be able to sustain the same standard of living, or would they have to make changes?
- Would they have to sell their house, move to a smaller house, sell possessions, cancel education or take out loans or make debt to get by?
- Would they be able to cover final expenses on your life, like medical bills or funeral expenses?
- Would they have to drastically change their life plans? (for example find work, take a second job, postpone retirement).
How will life insurance help your loved ones?
- Replace your income
If you are the breadwinner for your family, they depend on your income to pay the bills and afford living expenses. Your life insurance policy should ensure that the basic necessities, such as your home loan, rent, municipal and grocery bill are taken care off.
- Cover medical expenses
If your death is the result of a lengthy sick bed, your medical aid might not cover all the expenses. The last thing you want is to one day saddle your family with outstanding medical bills, which could run into hundreds of thousands of Rands.
- Cover your spouse’s contribution
Apart from a primary or sole income, it’s a good idea to have life insurance cover in place for a non-working spouse as well. Should they suddenly pass away new expenses like school transport, cleaning services and the like need to be taken into account.
Raising kids is expensive. Whether it’s pre-school, school, varsity or college – every age comes with added expenses like tuition fees, transport, extra lessons, sport and more. Life insurance will ensure that your child will not have to give up a quality education due to financial limitations.
- Pay for outstanding debt
South Africa is one of the most over-indebted countries in the world. Whether it’s motor financing, cellphone contracts, furniture or clothing accounts – outstanding debt can ruin your family.
Is there anyone who doesn’t need life insurance?
Always keep in mind the primary function of life insurance: to ensure that those who are financially dependent on you can maintain their standard of living beyond your death.
Most people who doesn’t have financial dependents, don’t need life insurance. Although their family and loved ones would be emotionally devastated if they should pass away, their financial situation won’t be worse off.
When life changing events occur, it’s time to start rethinking your life insurance needs – getting engaged or married, moving in together, starting a business or falling pregnant.
Where do you start?
Life insurance is one of those things we tend to put off. No one likes to think about their own mortality, or we try to avoid the monthly premium as long as possible. Reality however, is that life can change in an instant, and you don’t want to be caught off guard.
The most important thing to start with is to just take action. You need trusted, reliable advice to help you determine the amount of cover you need, and understand your options when it comes to selecting an affordable premium. Be careful of fly-by-night brokers and advisors – because life insurance is the one thing you cannot fix later if you buy a bad product now. Start by discussing your needs with a life insurance provider that has a good reputation, has stood the test of time and has a track-record of excellence.
Spending a few minutes to get your life insurance in place can ensure your peace of in for a lifetime… and beyond. Millions of customers has placed their trust in the Old Mutual brand for over a century. For affordable, reliable life insurance you can trust to do right by your loved ones, get an online Old Mutual iWYZE Life Insurance quote now. It takes less than 60 seconds.
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