The Essentials

'Life insurance' is a catch all phrase often used to refer to long term insurance products.

Long term insurance generally refers to insurance products that protect your family in the event of your death or in the event that you are unable to work.

In the event of your death

As far as insurance goes, life cover is pretty straightforward:
if you die (for any reason), the cover amount (or sum assured) is paid out to whomever you choose (your beneficiaries).
More on this here.

Other life events or “Risks” are insurable too. The inability to work, disability, critical illness are risks often bundled together with Life Insurance.

If you are unable to earn an income

In the event that you are unable to earn a income, what happens?
Well here, products like, Salary Protection, Disability and Critical illness Cover come into play.

Tough questions to ask yourself. What you need and why is the place to start.

Determine your needs

A little more about insurance:
Insurance is simply the transfer of the risk. You transfer your “risk” to an insurer and pay a premium in order to do so. Simple.

So what about underwriting?:
Underwriting is the term used by life insurers to describe the process of assessing risk. We ask a range of medical and lifestyle questions to determine an individual risk profile. This allows us to provide a price based on your individual risk profile.

Claims and beneficiaries

When taking out a policy the insurer needs to assess their risk. They do this by asking you questions or “disclosures”.
The main cause of claims being rejected is because of non-disclosure or “omitting the truth”. Being truthful when applying for life insurance is important as the same questions will be assessed at claim stage prior to claims being paid.

More about that here



Interesting articles on life insurance

Think you might need life insurance? Here are some questions to ask yourself.
If I were to die how would my dependants survive without my income? read more »
Things I wish I’d known before buying a house

Buying a house isn’t something you do every day, so when the time comes, it helps to have some inside information.

An Offer to Purchase (OTP) is a serious thing

This is a legally-binding document that contains a lot of jargon. Make sure you understand what you’re signing up for. Unfortunately tenants, property agents and sellers aren’t always to be taken at their word - rather make sure you understand all the terms in the OTP, and ask as many questions as you need to before you sign.

Look closely

It’s useful to know that if you like a house after your first viewing, you may enlist the help of ...

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A Few Questions to Help You Plan For Your Pregnancy

Although this list of questions may seem daunting at first, if you give yourself enough time to work through these questions, you should be sorted by the time your baby is born.

1)  Admin and finance-related (pre-baby)

  • Medical aid
    • Do you have medical aid? What pregnancy-related benefits do they offer on your chosen option? Additional costs: gynae visits - frequency, and cost per visit?
  • Emergency savings
    • Set some savings aside in the event that you need to go on maternity leave earlier than expected (aim for a month or two)
  • Budget
read more »
Baby on the Way? How to Beat Budget Blues

Ask someone whose got kids for advice, and most likely you’ll hear: “Your life will never be the same again.” But that statement is almost always quickly followed by: “But it’s so worth it!” If you’re having your first child and up until now, haven’t had to provide for anyone but yourself, there will be some big changes - especially in the way you spend your money. But with some careful planning, you won't be caught off guard. We compiled a list of things to help you get started.

Put plans in place

  • Budget - literally. Make of the additional costs you will have to cover, and adjust your spendi...
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What is an accelerated funeral benefit?

It may come as a surprise, but a life insurance claim can often take up to a few months to pay out.

So what about the funeral costs? Well, you could take a funeral plan, or if offered by the insurer you could get an accelerated funeral benefit as an add-on to your life policy.

The accelerated funeral benefit will pay out a portion of the full benefit prior to any investigation and can be as quick as 24 hours from receiving all the required documents.

The full benefit will pay out less the funeral benefit once the claim has been assessed.

read more »
Buying an underwritten policy? Answer all questions honestly and accurately. 

When buying a life insurance policy it is very important to answer all questions honestly and accurately.

Why? An underwritten policy is priced according to your individual risk - hence all the questions. Not answering honestly and accurately could lead to something insurers call 'non-disclosure', and that could mean a policy doesn't pay out when it comes to claim stage.

So whilst it may seem like a good idea to save a few rand a month by not disclosing the fact that you smoke an occasional cigarette, you may in fact be wasting money and defeating the point of taking out insurance.

read more »