Information On Life Coverage In South Africa
Providing survivors with sufficient funds, should you suffer a premature death, means planning ahead and taking out some type of life insurance. All insurance money is in a lump amount, and that means it can be used to address a number of things. First and foremost, are the immediate expenses involved with estate settlement and funeral costs. Later, there will be the long-term needs of survivors. One advantage of a life insurance policy is that it allows you to make needed provisions for your dependents and survivors, and some policies offer disability benefits, as well as a retirement annuity.
There is a wide variety of life coverage in South Africa. Included in this are policies that offer term, whole and universal life insurance coverage.
With a term policy, you get coverage that lasts a predetermined amount of time. So really, it is life insurance coverage with a specific life span, after which the coverage is no longer available. This type of plan is great if you only need coverage for a limited or set amount of time. An example might be that you are paying off your mortgage, and only need life coverage during the time it takes to achieve that. Being a shorter termed policy, term insurance coverage is cheaper. Unfortunately, it does not have a cash value, nor does it have 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.
An added bonus with a universal life insurance plan is the investment component. You make premium payments, but you receive interest on anything that is above the cost of the insurance. So, you get cash value on that amount each month. There is potential for rapid growth, but it is not guaranteed.
South Africa is home to several excellent insurance companies, one of which is1LifeDirect. This company has not been around long, but they have made a favorable impression by providing customers unique products and low monthly premiums. Because they use a direct sales model, there is no middleman. This means 1LifeDirect saves their customers on the cost of premiums. Discovery Life Insurance generates excellent insurance products, probably because it draws its skill from the medical aid industry. It also has a great loyalty program.
A big name in the insurance industry, Liberty Life Insurance offers three premium options that can fit any need. RMB Insurance provides its customers with one of the largest assortments of products on the market. And last but not least, Sanlam Insurance offers both life insurance for personal coverage, as well as group life insurance.