What is Term Life Insurance?
Term life insurance is designed to be simple and affordable. It has a clear and transparent value proposition – you pay to obtain coverage that can support your family, should you pass away during the term of your policy (e.g., 10, 20, or 45 years), and that is it. It also provides invaluable peace of mind during the years when you most need to protect your people often at a cheaper price.
Most people align the term with key milestones like when they expect to retire, when your partner will retire, when their kids will become independent or when their bond will be paid off.
One of the primary purposes of life insurance is to provide financial support for your dependents during a time when they would have relied on your income. Once you've reached a point where you are living off your savings or, your savings or retirement income can adequately cover your essential expenses and those of your dependents, the need for life insurance may diminish. This is especially true if you've already settled significant financial obligations like a mortgage or debts.
Whole Life vs Term Life Insurance
Term life: Affordable coverage for a specific period. Great for young families or temporary needs (like covering your bond).
Whole life: Generally, more expensive than term life but you can keep the policy for as long as you keep paying the premiums.
Term Life vs Funeral Insurance
Term life provides a larger pay out than funeral insurance, which typically covers just burial costs. Term life also provides significantly better value for money i.e., more cover for your premium. Funeral plans are designed to cover the cost of a funeral. They pay out very quickly on death so that the money is available when your family needs it to pay for the burial. While funeral plans are certainly important, you should also think about what will happen to your family after your funeral.
EasyProtect offers the best of both worlds- you can get enough cover to provide for you family long after the funeral at great rates and the first 10% (up to R50,000) of the claim is paid out within 48 to help with the funeral and other urgent expenses.