Insurance of any kind is a grudge purchase, and perhaps life and dread disease even more so because death, or being permanently incapacitated and unable to work, is not a pleasant thought.
Yet, either a critical illness diagnosis or death will “not only have an immense emotional impact on your family but a financial impact as well,” said Corli Basson, business manager of Underwriting at 1Life Insurance.
She said that life cover payouts can be used to cover daily expenses such as food, clothing, school fees, and rent/home loans to safeguard your family’s financial future and build generational wealth. “Life cover will protect your family’s lifestyle and financial future should you pass away.”
Life insurance can also cover settling a bond.
Managing executive of Absa Life, Eugene Strauss, said: “It is common practice for banks to require that you cede a portion of your life insurance policy to them when taking out a bond. This ensures that, in the event of your death, the outstanding bond balance is paid off directly to the bank, protecting both you and the lender.”
Kia Brokers managing member Gerald Kahn explained that life cover was also dependent on life cycles, such as whether debt and children’s education needed to be covered at that stage.
