People often find it difficult to understand the advantage of paying for something when they experience no immediate benefits. Is it really that important to have a life insurance policy? Nobody likes to think about tragic events like death, but the truth of the matter is that even young, healthy people can die without warning.
Life cover will guarantee that your family will be able to maintain their standard of living even when you are no longer around. While you cannot anticipate what will happen to you tomorrow, you can make sure you're family is well cared for. When people are in mourning, the last thing they want to think about is financial worries. A life insurance policy will pay a certain amount of money to your family (or the beneficiaries of your life insurance policy) in the event of your death. The money can be used to settle outstanding obligations, but can also provide a steady income stream when your family has to survive without your salary.
Especially if you have a mortgage, car debt and young children, taking out a life insurance policy will ensure that your spouse can settle debt, care for your children and maintain the same lifestyle as before.
Young people are especially cautious of life insurance when they have no dependants, but what about car or study debt? Life cover can prevent your family from financial troubles in the event of your untimely death.
How much life insurance do you need? This will depend on your family's current lifestyle, the number of dependants, the amount of outstanding debt and the remaining period of time you'll have to provide for them. A general rule is that
R1 million of life cover can replace R4 000 of monthly income.
R1 million of life cover can replace R4 000 of monthly income.
There are numerous online tools available that can help you make an informed decision. Online life insurance is a quick and easy way to get affordable life cover.
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