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LIFE INSURANCE EXPLAINED

Even though talking about ones own death is a highly uncomfortable topic of conversation, it is important to put measures in place so that loved ones do not need to have additional suffering with financial issues. By insuring your life, you can help to ease the pain which relatives and those close to you may suffer by eradicating additional worries of any debts and financial difficulties as well as sorting possible provisions your family may need.

The death of a relative is always a painful experience to bear and excess payments and related financial worries can only make the process increasingly difficult and strenuous to cope with. Paying a lump sum can help resolve these concerns with immediate effect, dependent on the policy you select.

The South African market is currently vast – with a great variation of policies and companies to choose from. Whatever it is that you are looking for, be it 100% family support, disability cover or retirement annuity, finding a suitable premium is easy for modern day citizens of the nation.

Life insurance can be more versatile than simply covering debts after death. Not only do some policies pay any outstanding fees - be it on your home, car, or other purchased items, but many also cover in the case of the person facing permanent disability. Although it may be unpleasant to consider death, it is always wise to have a back-up plan in situ – whatever your age or health condition.

There are various types of policies to opt for, dependent on the specific criteria which are important to you as an individual. If it is cheap and short-term cover that you are require, term life insurance is probably the most fitting option. Inexpensive though it may be, this type of insurance has no value for cash or investment and simply terminates upon reaching the agreed date of expiry.

As the name suggests, whole life cover runs until the holder’s death occurs. Positively, you can borrow in concordance with the policy as soon as it has gained cash value as your premium is firstly invested by the business. This is an ideal choice for those who are looking for straight forward insurance that does not expire after a certain amount of time has elapsed.

The last of the most three common methods is universal life cover, which has the additional element of investment possibilities. As policy holder, you may make investments, but return cash is entirely dependent on the development of the investment in itself. Quick growth can happen, but is not guaranteed and therefore proposes an opportunity of risk.

Hundreds of various life insurance opportunities are currently being offered in South Africa, the above three examples being just a small snippet of the many available options. Ranging from credit life, with or without profit, level term and increasing or decreasing term, there is bound to be a suitable programme available for you.

To conclude, by taking all evidence and viewpoints into consideration, it appears to be sensible to invest in some form of life insurance – for the benefit of yourself and your relatives and friends upon serious personal injury or death. Your choice should not be deterred by the fact that such coverage is not a compulsory, imperative stipulation. After all, we cannot be defiant that death awaits all humans, and we must take measures to prepare for this.

Futher Reading:

1. Selling your Life Insurance Policy.

2. The 3 Types of Life Insurance available in South Africa

 

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