Shedding light on life-insurance policies – a helping hand when you need it most. By Helen Wallace
Resistance is futile. While the subject may be one that can make people uncomfortable, at some point, everyone must come to terms with their own impermanence, because until someone discovers the elixir of life, death is something none of us can escape.
Often, the biggest worry when it comes to one’s own death is the concern for those who will be left behind; they’ll not only have to deal with the grief of having lost a loved one, but often must also carry out proceedings and still try make ends meet. Fortunately, though, there is a way that you can go about easing some of their future burden while also giving yourself proper peace of mind in the present. Life-insurance policies cater to these needs.
Isn’t dealing with the death of a family member overwhelming enough without having to worry about the finances?
‘Death cover, by its nature, benefits family members who are dependent on you to provide for them financially once you have passed on,’ explains Gareth Jones, a commercial manager specialising in insurance. ‘The level of cover required will vary depending on which stage of life you are in; for example, if you are young, single and just starting out in your career, then you may not need to have much cover in place.
‘If, however, you’re in the mid-stages of your life and are, perhaps, married with kids and you have a bond and car payments to honour, it is much more important to have sufficient cover in place – in the event that you pass away, your loved ones will still be provided for.’
Those of us who have entered our golden years similarly need to make adequate provisions. ‘As you move into later life and you have built up assets, possibly paid off your home, and your children have left school and university, then the need to have death cover in place is again reduced. At this stage of life, death cover usually becomes more expensive, so fewer people are able to continue with this type of cover.’
While the cycle of life is one that can’t be escaped, passing away is not the only thing to consider when shopping for your policy. ‘Where death cover is designed to provide for all of your dependants when you have passed away, disability cover can provide a financial lifeline in the event that you are unable to continue working, mainly owing to physical or mental disability,’ explains Gareth. ‘So being unable to earn a living, combined with any of the additional costs of care owing to your disability, may require significant and expensive changes to your lifestyle that could be financially crippling for your whole family.’ Accidents happen, but if you plan ahead and select a policy that is right for your needs, you can ensure that you will remain solvent in spite of any unfortunate circumstances that may occur.
Making provisions for your future and that of your loved ones is never a bad idea and is definitely something worth considering for your own peace of mind. Speak to your insurance company and find out which type of life policy would best suit your lifestyle. That way, you’ll know that when finally you stand before the Pearly Gates, everyone left here on Earth can remember your legacy and appreciate all you have done in order to ensure their financial security.
Spot the difference
Life insurance covers family members in the event of death and oversees that the assets of the deceased are handled according to their last will and testament. Death cover offers financial support to your family via a benefit payout, which will cover the cost of the funeral proceedings and help them get back on their feet.
Did you know?
Between 2010 and 2012, SA’s national insurance industry paid out an estimated R80.3 billion in death cover and R22 billion in disability cover.
We’ve got you covered
Here at Club, we want what’s best for you and yours even at the worst of times. That’s why subscribers have access to a R2 000 death benefit and Platinum Club members to a R10 000 policy to help you when you need it most.