Just for you: Do you need life insurance?

Posted on 13 Sep, 22 by BrightRock

The last few years have been a difficult economic period that has been both financially and taxing. With proper planning and an appropriate insurance policy, you can ensure that you are financially covered in the event of death, disability or severe illness.

If you earn an income, life insurance is essential

Many people believe that if you are young, you do not require life insurance. The truth is that everyone who earns an income or has financial responsibilities should consider purchasing life insurance. The youth, like the elderly, have expenses that may need to be covered if something were to happen to them. For example, if you recently purchased an apartment or house, you may require life insurance to pay off your bond if you become disabled or die.. If someone is financially dependent on you, it’s even more important to make sure that there’s a life insurance pay-out for them if something happens to you.

It’s a good idea to get your life insurance now rather than later. Insurance becomes more expensive as you get older and are more likely to become ill. By taking out life insurance in your 20s, you enjoy much lower premiums than if you took it out later in life.

Cover yourself and your loved ones

Having life insurance is an investment in the well-being of your family. It will assist your family in meeting financial obligations, allowing them to maintain a similar lifestyle in the event of your death or disability.

Most life insurance policies will pay out a lump sum if you die to help pay for your funeral, financially assist your dependents, and settle debts such as a home loan. Income protection benefits will pay either a lump sum or a monthly amount in the event of a disability. Severe illness benefits are typically paid in the form of a lump sum to assist you in meeting any additional costs that may arise if you become seriously ill or injured.

Insurance isn’t a one size fits all product

Everyone has different circumstances and needs from the next person. Their lives, needs and the people they love and want to protect all vary. Fortunately, many well-qualified financial advisers can play an invaluable role in ensuring financial sustainability for your family by providing a needs-matched product that is unique to your needs and will perfectly protect you and your family, giving them peace of mind in the event of your death or disability.

Financial advisers must meet strict regulatory requirements and be licensed by the Financial Sector Conduct Authority (FSCA) and product providers.  You have the right to ask your adviser for their credentials and whether they are an independent adviser or work for a specific product provider.