Being in the process of taking out life cover can come with a lot of questions. After all, you want to give yourself and your loved ones the best cover that will meet your needs. Here are the benefits that come with a life insurance policy.
Education is one of the largest expenses South African parents will face. Furthermore, without a reliable educational plan in place many parents could face debt when trying to provide the best education for their child(ren). A life insurance policy can act as a financial safety net that safeguards your child's educational future. The payout can from your policy can be used to take care of their educational expenses ranging from school uniforms, school fees, accommodation, and more.
Daily living expenses
With the ever-increasing cost of living, being able to protect your loved ones with a safety net that can provide and protect them from daily living expenses can bring you peace of mind. It is more crucial if you are someone who has dependents who rely on you financially. A life cover payout can be used to handle daily living expenses and help maintain the lifestyle that your loved ones are used to.
When we die our debt doesn't die with us. It could be passed on to loved ones who will have to face the pressure of clearing whatever debt you may have accumulated. Knowing that you and your loved ones are covered and won't have to face a situation where your assets that you have passed on are repossessed or having loved ones struggling with paying off the debt.
As part of investments
Building an investment portfolio often comes in the form of shares, funds and accounts that can help build financial security. But did you know that life insurance can also be used as part of your investments and creating financial security? You can choose to create a will that will control how the life cover payout is paid out and used.
Surety for a home loan
One of the terms that come with a home loan is being able to prove that you will be able to pay back the loan. Your policy can be used as surety to show lenders that your home loan will be paid no matter what happens to you. However, it is crucial to understand the effects that come with using your life cover as surety for a home loan which can learn about here.
Terminal illness costs
Is another benefit that comes with your policy to cover you for terminal illnesses that you have been diagnosed with by a medical professional, which means that you are likely to die within a year. You have the choice to claim 50% or 100% of the life cover amount to use towards paying your medical bills, any debt you might have, or as you see fit.
Financial safety net
With 57% of South Africans experiencing financial stress, having a safety net in place has become increasingly important to protect you and your loved ones against life's unforeseen events. Moreso, when it comes to handling losing a loved one that you are financially dependent upon. Life cover will give you peace of mind knowing that your loved ones will be financially taken of even if you are no longer around to do so.