What is life Insurance and why do I need it?
Life insurance is a cash lump sum payment to protect your family’s way of life should something happen to you. You have probably worked hard to keep your family happy, healthy and secure however, have you considered how they would cope if you were no longer around? Some policies will also pay on diagnosis of a terminal illness. Without the current income you provide, your family might struggle to pay day-to-day expenses such as rent, mortgage, utility bills, school fees and even the basics such as food and clothing. This insurance is a great way of protecting the life you have worked so hard to build and taking care of your loved ones.
How much cover do I need?
Once you accumulate liabilities and have dependents the need for life insurance increases. You want to make sure that in the event of your death, your family and dependents could continue on without you and the income you provide. Many people insure themselves for a sum that would cover their mortgage and other debts and allow their family to continue on with their schooling and everyday financial commitments.
How much does it cost?
The good news is that life insurance doesn’t have to be expensive or complicated. The cost of cover will vary based on many factors such as your age and health. It will also depend on how much you intend to insure yourself for. Premiums generally increase each year as you get older, but you should also remember that as you age, your dependents become financially independent and you are more likely to have paid of liabilities, your need for a large lump sum insurance is reduced.
