Is a life insurance policy really for life?
Posted on 17 Nov, 21 by BrightRock

A life insurance policy looks after your loved ones when you cannot
Having the right kind of life cover, critical illness cover and disability cover means that you and your family will be able to maintain a similar lifestyle when you pass away or when your ability to earn an income is affected. Insurance gives you peace of mind that your loved ones will be taken care of.
You don’t need the same amount of cover throughout your life
Your cover should change as your needs change. For example, the insurance needs of someone with young children versus the insurance needs of someone with no dependants and nearing retirement are very different. Life insurance is mostly about protecting your future paycheques, and replacing your income if you aren’t there, so it makes sense that you would need more cover the more paycheques you need to protect.
Some elements of life cover are no longer necessary when you retire
When you retire, disability cover is no longer necessary, as you aren’t earning an active income anymore and don’t have any paycheques to protect. Even after you stop earning an active income, though, you still need some life insurance to cover expenses like funerals and deathbed costs.
You should link your life insurance cover to the period that you need it for
With life insurance, you are aiming to cover certain long-term expenses that you have, such as a bond on a property or school fees for your kids. Not all of these needs and expenses have the same duration.
Remember, though, that expenses like your bond are for a fixed period, so you shouldn’t still be covering them on your policy when they are paid off, or there is no longer a need for them. It’s important not to be overinsured or underinsured at any stage, and this is where having a good financial adviser can be valuable.
A financial adviser can help you
Insurance products can be pretty complicated. Making the wrong decision can have serious consequences for you and your family, so it’s worthwhile to shop around for the best advice. Fortunately, many well-qualified financial advisers can answer your questions, provide clear explanations, and help you understand what you’re buying when it comes to life insurance.
Financial advisers must meet strict regulatory requirements and be properly licensed with the Financial Sector Conduct Authority (FSCA) and product providers. You have the right to ask your adviser for their credentials and ask whether they are independent or work for a specific product provider.
Sign me up
Speak to your adviser, or sign up to have one contact you
Fill in your details, and we’ll have an accredited financial adviser contact you.
Want us to get in touch?
Fill in your details, and we’ll call you.
Want to report suspicious online activity?
We live in a digital world where information and data can be shared across the globe in a matter of minutes. With cybercrime on the rise, we want to help ensure you’ve got the tools to keep yourself safe and informed.
Call our 24-hour helpline on 086000 6335, manned by ODEK Technologies, if you’ve received a suspicious email, text message or email involving BrightRock. You can also email us at helpdesk@odek.co.za with the details of any suspicious online activity that you’ve come across. Please be sure to include your contact details in the email. We’ll then contact you, investigate and keep you updated on what we find. ODEK Technologies is BrightRock’s ICT partner.
Learn more about how you can stay safe online.