If you want your survivors to have sufficient funds, in the event of your death, then life insurance is something you will want to look into. Insurance companies pay in a lump sum, which means the funds can be used to handle the immediate expenses involved with estate settlement and funeral costs. However, this also provides help with the long-term needs of your survivors. A life insurance policy allows you to make provisions for your dependents, and some even offer options in case you become disabled. You can also find a few that propose a retirement annuity.
South Africa really has a wide variety of life insurance options and providers. You can easily find policies that offer term, whole and universal life insurance plans.
Term life insurance, is coverage that lasts for a specific term of time. In other words, it is life insurance coverage taken out for a predetermined length of time, after which the coverage simply ceases to exist. This type of plan works very well if you want life coverage for a limited period. For example, maybe you only need a life insurance policy during the years it takes to pay off your home mortgage. Because it is shorter termed, this type of life insurance coverage is less expensive. The down side is, it does not have a cash value or investment potential.
Whole life insurance coverage is somewhat different. It is more comprehensive. A payout is guaranteed with this kind of coverage, and it expires upon the policyholder’s death, or when the policy is given up. With whole life insurance, once you are covered, you do not need to worry about becoming uninsurable down the road. The insurance company invests the premium you pay, and you can borrow against the policy as soon as there is cash value. Of course, the cost is higher than a term life insurance policy.
When you opt for a universal life coverage plan, an investment component is added into the policy. A cash value is credited for premium payments that are greater than the cost of the insurance, and every month you receive interest on that cash value. There is a possibility for rapid growth, but it is not assured.
There are several life insurance companies in South Africa. One of those companies is1LifeDirect. Although they have not been around for long, they have made a big impact by providing customers unique products and low monthly premiums. They use a direct sales model, which cuts out the middleman, allowing 1LifeDirect to save their customers on the cost of premiums. Taking its expertise from the medical aid industry, Discovery Life Insurance generates excellent insurance products, coupled with a wonderful loyalty program.
One of the bigger names in the insurance industry, Liberty Life Insurance offers three premium options that can accommodate any need. Moreover, one of the largest varieties of products on the market comes through RMB Insurance. Finally, Sanlam Insurance can provide both personal and group life insurance coverage.
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