Life insurance is a financial product that protects your loved ones, giving you and your family peace of mind. Life insurance is an agreement between you and the life insurance company. The life insurance company agrees to pay a sum of money to your beneficiary if you die from natural or accidental causes. In exchange for this long term insurance cover the policy holder agrees to pay a predetermined monthly fee called a premium. A life insurance policy forms the basis of protection and financial stability after one’s death. Life insurance helps beneficiaries financially after the owner of the long term insurance policy dies by settling outstanding debts and taking care of your dependents in your absence.
Life insurance covers you for an entire life with a level premium. Life insurance policies have a cash value that builds up over the life of the long term insurance policy. If you decide to cash in your long term insurance policy after several years, you will get some money back. Life insurance policies cost more than term insurance policies. Insurance companies invest money collected, pay claims and add to the cash value of life insurance policies.
Term insurance is the most basic life insurance that protects you against death or disability for a certain time. If your beneficiaries do not make a claim the term life insurance policy will expire worthless. Term insurance costs less initially because the insured pays the pure cost of the risk each year. Unlike life insurance that has a level premium throughout its life, term insurance either increases each year, every 5 years or is level until the age of 65 when the term insurance policy expires. Term insurance is more expensive for senior citizens because the likelihood of the insured dying increases. Term life insurance is inexpensive for younger citizens and is a cost effective method of providing cover for a family. The young and middle aged with extensive bills and responsibilities should consider term insurance to offset their debt.
Because you cannot predict the time of your death the best time to get life insurance is now. The earlier you start building up life insurance the better because it becomes more cost effective. In addition, if you are young and still in good health, you will not be penalised because of extra risks associated with certain conditions that might develop later in life.
The amount of life insurance required varies by age and individual circumstances. PSG Konsult will provide an expert advisor to discuss your situation and provide you with life insurance quotes so that the long term insurance cover matches the requirements of your lifestyle and estate planning. This can help your family:. This can help your family:
- Keep its ability to pay for the home.
- Maintain their current standard of living.
- Pay off debts, estate taxes, and final expenses.
- Create a fund for tertiary education.
- Create a fund for a family member with special needs, and
- Protect your family’s dreams for the future.
Like death, critical illness and tragic accidents are often equally unforeseen. These events might not lead to your death, but still pose serious implications for the quality of your life and the associated costs thereafter.
Few people consider the devastating financial implications following a critical illness or a disabling accident. The resultant loss of income and the cost of treatment and enforced lifestyle changes all add up and might lead to dire financial straits.
Critical illness and disability cover is an extension of life insurance which is designed to pay out a lump sum in the event of you suffering from a critical illness or disabling accident. The lump sum paid out by the critical illness and disability cover helps with the extra costs of living with a particular condition. However, it is important to note that the long term insurance cover only applies to illnesses or disabilities defined within the long term insurance policy.
Unless you have substantial savings (or other sources of income), some form of critical illness and disability cover is essential. How much long term insurance cover you need depends on your circumstances. You should consider the long term insurance cover you will need in the event of contracting a serious illness or disability, for example being able to pay off the home loan or modifying your home to accommodate your condition.
We can compare life insurance quotes from the different insurance companies so that you receive the most appropriate long term insurance cover at the best price.
source: http://www.psgonline.co.za/insure/life-insurance.php
