Life Insurance policies are a must have product these days. Sometimes your employer gets you the policy and sometime you must buy it on your own to cover the life of your dependents after you. There are basically three types of life insurance polies that you can choose from based on your needs and requirements. Always research about the life insurance company you are buying this product from before you invest into it. As it’s a long-term product, you need someone who is established in the market and reliable.
There are three types of life insurance policies that you can choose from. Let’s have a consider them one by one –
Term Life Insurance –
This is a simple insurance product available in South Africa which covers you for a said period on payment of a small amount of premium. Once the policy period is complete a or lapsed, you do not get any return. It is a good product to invest into when you want to avoid hefty premiums but require to be covered due to circumstances. It is a product that can be bought in periods like when you have a huge home mortgage yet to be paid off on you or any similar condition, so that your family do not have to suffer in case of any mishap. This policy is a pool of money where many people are paying the premium and the one who needs is paid off the amount to cover the risk. If in case of untimely death, this policy amount is paid off to your family to survive the risks and payments that otherwise you would have to bear.
Whole Life Insurance –
This is a kind of insurance product a available in South Africa where the insurer pays the premium right from the date of buying the insurance to end when he dies. Upon his death, the policy amount is paid off to his estate. If he seizes the policy in between, then also, he gets the amount after deduction of certain penalties for early withdrawal. This kind of policy have a sure shot returns, whether the policy owner dies or not. This may sound more lucrative than term insurance but here the premium amount is much higher that what you are paying off in a Term Life Insurance.
Universal Life Insurance –
This is another life insurance product available in South Africa which invest your premium amount into market commodities and you get a return for every premium you pay. This is a high risk, high return product and its premium amount can be adjusted as per the cover and return you require.
When you contact your insurer in South Africa, ask his to tell you about all three kinds of insurance before you make investment. This will enable you to judge what kind of life insurance policy suites you the best and you can make the right decision on what kind of product you want to invest into. While investing do not forget the basic need of the life insurance is to earn money for you but to cover your family in case some mishap happen to you.