Is life insurance really for me?
While not required by law like car insurance, life insurance is as important and a necessity for many families. The policy holder goes a long way in ensuring that his family will be protected in the event of an unexpected death.
Most life insurance policies involve the policy holder and his or her husband or wife. While this is the common beneficiary, life insurance policies do not limit the beneficiary to your spouse. Policy holders can also designate brothers, sisters, children, nephews, nieces, and business partners.
Life insurance can stay relatively cheap packed with great benefits assuming you meet a set of criteria. It’s also important to start young and not open up the policy when you are entering a mid-life crisis. Start young because you never know when you’re going to die.
Just like you never know when you are going to need car or health insurance, you also never know when your family is going to need your life insurance. The thing that separates life insurance is you do know at some point in your life you are going to die and that money will be rewarded.
If you have an insurance broker, ask for details and investigate the implications of taking out an insurance policy on your life. Assuming you are in good health and your occupation is not “high risk,” your chances of a cheap premium are high.
The insurance provider will require the proposed policy holder to go through a series of medical examinations and tests. Unfortunately this is required, as it is the only way an insurance provider can judge your current health.
If you take out the plan early, you now have an option of halting payments when you reach retirement age. If you are concerned about still paying the premium when you no longer make as much money as you did when you worked, you can stop paying the premium. The insurance provider understands and will still award the “fixed term” rate when you pass. But you must start early to enjoy this pleasure.
“Who needs life insurance?” Stop asking yourself that question and sign up before it’s too late.
Graham McKenzie is the content Syndication Manager at insurance123.co.zaSouth Africa’s leading Life Insurance information portal
