Authorised by Sanlam
What is Life Cover?
Life cover is a policy you take out to ensure money is available in unforeseen unfortunate events. Examples of such circumstances are death, disability, severe illness or loss of income. You can use the cover to pay your debt or provide an income for your loved ones that you leave behind.
In such events, the cover will pay out as a tax-free lump sum that the beneficiary can reinvest to provide a monthly income should your salary fall away.
Life cover can be for a specific term, or it can be lifelong. The breadwinner of the house needs to have sufficient financial cover to make provision for if their income falls away.
Together with your life cover, other additional benefits can be taken out, such as disability cover, dread(ed) disease, funeral cover. Then Sanlam has a cashback benefit that the assured can also add, which will give you your premium back after 15 years.
Why is life Cover important?
Life cover means that your loved ones can depend on you financially – even after you’re gone or unable to financially provide due to disability or health reasons. Life cover is a safety net that can help protect your loved one’s lifestyle and daily expenses like school fees, groceries, car, and home loans.
Why is life Cover important to the bank?
The bank requires full life cover for the loan amount to settle debt once one of the partners falls away. The remaining partner is therefore not liable solely for the monthly repayments. In many cases, it isn’t easy to afford the full payment by themselves or individually. So debt can then be settled, and there are no more monthly payments.
How are Life Cover premiums derived?
The premium you have to pay for a life insurance policy depends on various factors like total coverage (sum assured), age, your medical history, gender, lifestyle, and qualification and occupation.
Can I take life cover out for my family members?
In brief: You can take out life insurance on direct family members and you share a bond of love and trust. You will be the policy owner, responsible for paying the premiums. There is one life assured per policy – so either your mother or father will be the life assured.
Should you have any questions on life cover please email us directly for immediate response.
For more information and life cover you can contact Willette