“No Dependents, No Insurance Right?”
Life insurance policies allow policyholders to financially secure immediate family members as well as other dependents.
You may be young or middle-aged; just starting out or already a proud owner of a house without any dependents in the form of children. Which means hearing the words life insurance does not apply to you, right? That’s not entirely true, because that’s when you need it the most.
What is the point of life insurance?
Life insurance is a financial safety net that protects you and your loved one’s financial future. There are people who view life insurance as a grudge purchase, but it is more than that. It has benefits that will benefit you and your loved ones.
“If you take out a policy, one of your beneficiaries (whomever you have listed to receive the payout) will be able to take care of your funeral expenses, pay off any debt you might have while having enough to continue the lifestyle that they know by being able to pay for their daily expenses. It can also be used to take care of medical bills should you fall terminally ill. You have the option of taking 50% or 100% of your policy amount to cover your expenses or tick off your bucket list,” says CEO of MiWayLife Craig Baker.
Why do you need it even if you don’t have dependents?
Even if you do not have children that rely on you financially, you may have a family that you wish to protect financially. This could be an adopted family that you would like to protect, a charity that you would like to donate to one day, or a social cause that can benefit from your policy.
If you are planning on having a child in the future, then it’s also important that you have a life insurance policy in place. “One of the golden tips when it comes to life insurance is to start off as soon as possible while you are still young and healthy. Think of it as something that will give you peace of mind knowing that your financial future is secured,” adds Baker.
Won’t it be expensive?
The common misperception that surrounds life insurance is that it is too complicated and expensive. However, contrary to this belief it is possible to get a policy that costs you as little as R149 per month. The benefit that comes with life insurance is that it maintains its value.
The trick is to take out a policy as soon as possible as each age group has a premium that tends to be higher, and as you age, you are more likely to develop health complications. There are ways in which you can save on your life insurance, but always remember to compare your options.
