There are many reasons why life cover is valuable for everyone to invest in, however, it's especially important for people with dependents. Whether physically, financially, or emotionally dependent, being able to provide for your dependents in the event of your passing is crucial. We’ve broken down the ins and outs of life insurance as parents: what it is, why it’s important, and how you can protect your family even after you’ve passed.
What is life cover?
Life cover, also known as life insurance, is a type of insurance policy that provides financial protection to the policyholder's loved ones in the event of their death. In simple terms, life cover is a contract between an individual (you) and an insurance company (in this case, Hollard), where the individual pays a premium in exchange for a financial payout to their beneficiaries upon their death.
Life insurance lacking for South Africans
More than 70% of South Africans do not have life insurance. This is brought about in part by a lack of financial literacy and in part by the perception that life insurance is prohibitively expensive. This doesn’t need to be the case. It is beneficial to go through all of your options with a seasoned financial advisor as there are many factors to consider when choosing a life insurance product or provider.
For example, it is crucial to be aware that the terms and conditions of insurance companies may contain exclusions - such as not covering death caused by suicide or partaking in dangerous sports. Understanding what different life insurance policies cover and exclude will be an important step in finding the best life cover for you and your loved ones.
Additionally, there are many different types of cover that you can take out as a parent. It’s important to understand what policies are offered as well as which one suits your needs best.
Hollard offers the following types of cover for parents:
1. Life Cover
Live the life you envisioned, confident that your family is taken care of. When life happens, our Life Cover pays out a lump-sum payment with no waiting period.
2. Ability Cover
All of us are only learning how to live, and occasionally we need something to catch us when we fall. Our disability cover includes cover for total or partial impairment and pays out up to R10 million.
3. Critical Illness Cover
You never know when life will throw you a curveball, so be ready for it. Our Critical Illness Cover provides payouts of up to R5 million in the event that you develop a serious illness, are diagnosed with a particular ailment, or have a particular medical treatment.
What life insurance for parents provides
Raising children is one of the most fulfilling experiences we get to have as humans. It is also one of the most expensive and stressful tasks to take on. If you pass away, your surviving children (and, if you have one, your partner) will be financially protected so they may continue to pay for necessities and maintain their standard of living.
Benefits of life cover
Life insurance enables you to ensure that the surviving members of your family have the resources to provide for your children, covering everything from basic living expenditures like rent or mortgage, bills, and food to daycare and even future university costs, among many other benefits:
1. Peace of mind
Life cover can provide peace of mind for parents, knowing that their loved ones will be taken care of financially, even in the event of their death.
2. Financial security
The financial payout from a life cover policy can be used to cover expenses such as funeral costs, outstanding debts, and living expenses, helping to ensure that your kids and other dependents are financially secure.
3. Protection against unexpected events
Life cover is designed to provide financial protection against unexpected events such as falling critically ill, helping policyholders ensure that their loved ones are not left with financial difficulties as they move through times of trouble.
4. Flexibility
Our life cover policies can be tailored to suit your specific needs and budget, allowing you to choose the level of coverage that best suits your family’s needs.
Life cover is a valuable investment for all parents looking to provide financial security for their loved ones when they pass. It offers peace of mind, protection against unexpected events, and a range of additional benefits, making it an effective way to ensure that your loved ones are taken care of, even in the event of their death.
Want to learn more about how you can Get Living with Hollard Life Cover?
Contact us today for more information about comprehensive, flexible life cover that you can trust.
