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Life Insurance South Africa
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Life Insurance South Africa – Get Free Instant Life Insurance Quotes

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  • Very Affordable premiums
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  • No unnecessary documentation
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Understanding the concept of Life Insurance

Life Insurance is aimed at providing protection to surviving dependents of the insured after the death of the insured. It is important for the applicant to conduct an analysis of their current financial situation. Based on the current situation, they should determine the future living standards of the dependents. Life insurance agents can help you in assessing your needs and determining the right sort of life insurance for you. There are several policies to select from. Variable universal life (VUL), universal life, term life, etc. It is advisable to re-evaluate your life insurance needs every year or after remarkable life events such as divorce, marriage.

So how does life insurance work? Understand the two major components of any life insurance component:

  • Death benefit: This is the amount of money the insurer guarantees to beneficiaries listed in the policy after the death of the insured. It is decided by the insured, and it is based on their analysis of their future living standards.
  • Premium Payments: These are the payments made by the insured to the life insurance policy provider. These payments are decided based on actuarially determined statistics. Hence, the insurer decides the overall COI (cost of insurance). Such factors as the occupational hazards of the applicant/insured, personal risk propensity, and medical history may be considered.

Universal life insurance (or cash value of the permanent) is South Africa’s life insurance component that serves two functions. Firstly, it serves as a saving account that can be used at any time by the insured during their lifetime. Some policies may restrict withdrawals depending on the purpose of those withdrawals. Secondly, it can be used by the insured to offset the escalating cost or serve as insurance as the insured gets older.

Why You Need Life Insurance

The main importance of life insurance is the sense of security you feel. Particularly when you realize that your loved ones won’t be adversely affected when you pass away. There are other reasons why life insurance is important. They include –

  • Paying off debts and any array of other expenses. The beneficiaries may use the proceeds of the life insurance to settle outstanding debts, car loans, credit cards, or mortgage. Other expenses include burial and funeral costs, which often run into thousands of Rands.
  • Serves as inheritance. Whether you have or don’t have real assets to transfer to your heirs, life insurance still serves as an excellent inheritance. You just have to put the names of your children on it. This will make sure that they will be guaranteed a stable financial future.
  • Protects your family and everyone else you love. It is a great way to ease the anguish felt by your family when you pass away. After your departure, they will be guaranteed a reasonable livelihood, similar to what they were accustomed to when you were around. This is extremely important if you are a parent of young children or have custody of disabled adults.
  • Gives you peace of mind. We all can’t know the exact day we will pass away. It could be today or it could be after a very long time. And no money can replace a loved one. However, life insurance can be a great way of protecting your loved ones from this uncertainty. Having a life insurance cover in place gives you and your family much-needed peace of mind.
  • It is an investment. Life insurance can also serve you as an investment for the money you would have. Otherwise spent on expenses that carry no long term benefits. This is especially true if the premiums are small, and you are obtaining them from your side business.
Types of Life Insurance

There is quite an elaborate list of options to pick from. Here are some of the types of life insurance you are most likely to find with your local insurer:

  • Permanent life insurance: As mentioned earlier, permanent life insurance offers both cash value components and death benefits. Another important feature, as its name suggests, it doesn’t have a specific time limit. You will be bound to it for the rest of your life.
  • Whole life insurance: It is very much life permanent life insurance but simpler. Here, the insurer will lock your premium amount. Meaning, you will pay the same premiums during the entire lifetime of your policy.
  • Variable Life Insurance: It is another type of life insurance. The only difference is that the insured is free to participate in a range of investment options, including equities. That way, the insurer can grow the funds during the entire lifetime of the policy. It also means the funds are exposed to risk because they are subject to the lows and ups of the market of the equities.

There are plenty of other options under life insurance.

Life Insurance Quotes and Quote Comparison

It is prudent to make a comparison of the quotes and make decisions accordingly. Term life insurance, for example, is bought for a given length of time. This could be as long as 30 years or as short as five years. A quote from the insurer simply gives you an estimate of the premiums you will need to pay. However, an online life insurance quote is a bit complicated. A little more than the simple price, because the price can change dramatically in a year. A real quote will indicate the true cost of insurance per year. This will help the buyer of the policy to make intelligent decisions.

Better yet, it is recommended that you make quote comparisons so as to find a quote that best pricing. And one that is in fine with your current financial status.

A quote is just an estimation of what the application needs to pay. Because it is based on an analysis of the applicant’s health, a healthier applicant will get a low rate while a less healthy applicant may be charged significantly higher. Applicants are placed in groups in which each group being assigned a specific rating based on the member’s level of risk. It is near impossible to know your group until the insurer reveals it to you.