If you want to take care of your family financially after you have passed away, then life insurance must be one of your first choices. It is a lump sum (agreed amount between you and your insurance company) that will be paid to the beneficiary (usually spouse or children) after you the policyholder has passed away. The primary explanation a person buys life insurance is to make sure that his or her family do not have to struggle financially to keep their heads above water. When a loved one, an income holder, pass away or disabled the family loses that income and that can lead to financial struggle. When you invest in buying a life cover policy, you are taking care of your family. The money can be used as the beneficiary wishes. For instance, you can use it to pay the mortgage, children's education fees and so much more. You can read more here if you are interested in more information.
Is there an age restriction on taking out life insurance?
Yes, you would have to be 18 years and older to buy life cover, and you have to be a South African citizen if you are looking to purchase insurance. Keep in mind that the older you get, the more expensive the plan will be, in other words, the older you are, the higher the risk of your death. It is best to purchase a life policy while you are still young so that your premium will be as low as possible.
Term And Whole Life Insurance
Term life insurance is the cheaper option when buying life cover because you purchase coverage just for a certain amount of time. The terms are usually between one and thirty years; your policy premium will depend on the amount of time you choose. Whole life insurance is the favored option between the two types of policies because it will provide you with cover your entire life. It is a little more expensive than term life, but you do not have to worry that after a specific time that you will not be covered.
It does not matter which option you choose; the important thing is to get some financial security for your loved ones. You never know what will happen in a second from now, so be prepared and take the necessary steps to provide for your family. The only thing in this world that is important is family; nothing should ever stop you from making sure that they can have a beautiful future.