The best time to get life cover is as early as possible in your career, according to Reuben Oosthuysen, Customer Engagement Manager, Hollard Life Solutions.
Oosthuysen said that young people between the ages of 20 to 35 generally don’t plan for their financial future or the future of their loved ones.
However, life is unpredictable, so there is no guarantee that they will be healthy forever or that nothing will happen to them in the future.
Instead of tempting fate, young people should get life cover to protect their future and the future of their loved ones.
Oosthuysen said that life cover is an insurance product that provides a cash lump sum on your death, or if you are diagnosed with a critical illness or disability.
Getting life cover when you are young also has its benefits including:
– the premiums are often more affordable, which will allow you to secure comprehensive coverage for yourself and your loved ones.
– access to a wide range of benefits, such as critical illness or disability coverage
– the underwriting process is typically faster and less inconvenient because young people are typically presumed to be in good health
– the process to increase your coverage or modify your benefits in the future will be quicker
– life cover products offer an income protection benefit that serves as a safety net in case people lose their jobs.
Misconceptions about life cover
Young people may have misconceptions about life cover which could prevent them from getting it.
Thembisa Mapukata, general manager: Tied Distribution at Old Mutual Mass and Foundation Cluster shares four misconceptions that people may have about life cover.
– Life cover is only for the rich. Chances are that you have a family that depends on you, whether you are rich or not. Having life insurance is a way to help your family even after you die.
– Life cover is too expensive. Life insurance coverage can be tailored to meet anyone's needs and income. Speak to a qualified financial adviser to assist you in getting the right balance of cost and cover.
– Life cover takes a long time to pay out. This statement can be true, but it is also expected.
Mapukata said: “Although both are equally important to have due to how they function when a pay-out is made, it’s important to note that a funeral policy can pay out within hours of all the required documentation being submitted.
“If the required information and paperwork needed for a life insurance claim is submitted soon after a death, there is no reason why the life single amount pay-out will not be paid within 14 working days.”
– Life cover requires medical tests. This is partly true, but it depends on the amount of coverage you choose.
“A full medical exam accompanied by health and lifestyle questions will enable your insurer to issue life insurance that suits your unique circumstances and needs and ensure the premium is tailored to your personal circumstances, which could be more affordable than the no test premium,” Mapukata said.
Choosing the right amount for you
Oosthuysen said that several factors come into play when assessing your coverage needs.
“While some policies may offer up to R1.3 million, others can extend up to R10 million, depending on the insurer you choose. The coverage amount will vary based on your specific needs, such as the financial support your dependents will require in the event that you can no longer provide for them,” Oosthuysen said.
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