3 Reasons to consider life insurance
There are certain stages in life that call for us to take stock of our financial situations and put plans in place for the future and the unexpected – and it’s a good idea to include life insurance in that planning. Here are three life events that may prompt you to consider a policy.
1. Buying a home
Are you and your spouse planning on taking out a home loan to buy a house together? Bond repayments can take a chunk out of your salaries each month, and it’s worth running the numbers to see whether you’d both be able to manage the repayments on your own if something had to happen to one of you.
When considering your insurance options and requirements, remember that the costs involved in owning a home are not limited to monthly bond repayments. There are often maintenance costs and unexpected expenses, too. The cash lump sum payout from a life insurance policy could help your spouse to cover these ongoing costs if you were gone.
Good to know: Some banks may require that you have life insurance or mortgage protection insurance as a condition of your home loan.
2. Having a baby
This incredibly exciting time in life is one where you’ll be making a number of decisions, from choosing a baby name to a colour scheme for the nursery. It’s also when you’ll want to have a hard look at your finances and plan ahead. Having a child adds plenty of extra costs to your budget, and it’s a good idea to chat to your partner about life insurance for both of you. If either of you would struggle to cover the costs of raising a child on your own, it’s worth considering a life insurance policy – a financial safety net which could help you to cover the costs of day-to-day living, pay off debts and add to your education savings.
3. Supporting elderly parents
These days, many people find themselves having to help elderly parents financially. If you’re taking on some financial responsibility for your parents, and they wouldn’t be able to manage without you, you may want to consider taking out a life insurance policy and adding them as beneficiaries. Or, if you already have a policy in place, you could consider increasing your cover and adding your parents to your list of beneficiaries. Remember, you are able to have more than one beneficiary, and can specify the portion of the benefit each beneficiary is to receive.
If you’d like to find out about Life Cover from Standard Bank’s direct life insurance services, get a quote or request that a customer service agent call you back.