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April 11th, 2017 by


We have all seen the adverts on television trying to guilt or scare us into buying life insurance. Not only do they usually not work, they’re also sure to put a dent in your mood.

But, beyond the doom and gloom, there are some great benefits to actually taking out a policy – both for you and your family.

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Here are five benefits you get from life insurance:

1. It Provides Insurance For Future Health Issues

Life insurance is no longer just a chunk payment your family receives after your death. It now actually comes in various forms to provide insurance for different situations.

Many life insurance packages also include cover for critical illness, terminal illness, and disability. You can even find packages that include income protection.

This means that severe and often unexpected diseases, like cancer or organ failure, won’t carry the same costs or debt that patients often see. The payouts and cover from life insurance protects the patient.

Also, if you lose your earning capacity, due to disability, certain life insurance policies guarantee continued income.

2. It Takes Care Of Debt

It sometimes seems unfair that family members inherit debt from deceased loved ones. But, someone has to pay back the money at the end of the day.

This is where life insurance comes in – it will take care of debt that your family would otherwise inherit.

This includes debt from mortgages and medical bills, which can make or break a family’s wealth. Having life insurance means that these critical debts won’t become the responsibility of your loved ones.

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3. It Can Create a Tax-Free Inheritance

The economic climate is tough. It’s hard enough to save sufficient money for your pension, never mind securing an inheritance for your children or spouse.

Life insurance payouts, however, often exceed what we could have hoped to have saved up for our loved ones.

There is also the substantial benefit of life insurance not being subject to estate duties. This if you nominate beneficiaries in your policy, rather than having the insurers pay the sum to your estate.

4. Many Plans Offer Cash Back

As consumers become more scrupulous about what they spend money on, companies are finding ways to incentivise insurance.

This means that many life insurance plans come with cashback benefits. If you don’t claim for a certain period of time, you receive money back from the insurer.

CLICK BELOW to read about the dodgiest insurance companies in SA!

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5. It Can Keep Your Business And Family Going

If you’re a business owner, especially a sole proprietor, a life insurance policy can protect your legacy and business in the event of your death.

Rather than being forced to shut down, your business will have breathing room to get things back on track by making sure your employees still receive their salaries.

Life insurance can also safeguard the income your family receives from your business or job. This is especially important if you are the sole income provider.

Your family can continue to receive an income even after your death and will have time to come up with other options, if you were the sole income earner. It also protects loved ones from having to sell off assets in a hurry out of desperation.