Protecting your loved ones financial future can give you peace of mind. Knowing how to do so is priceless. As the adage goes, ‘Knowledge is power’ and to know what life cover can do for you and your loved ones is priceless. Most covers come with benefits that can work for you while you are still living and once you have passed on. Here are how smart benefits from your life cover can protect your loved one’s financial future.
What are smart benefits?
Once you have been approved for a policy you will automatically qualify for the smart benefits that come with it. These are features that protect your family financially from life’s unforeseen curveballs such as becoming critically or terminally ill.
Craig Baker, CEO of MiWayLife, highlights that “Your family will also get access to an accelerated funeral benefit which smoothens the claim process by having your funeral benefit paid out within 48 hours. This accelerated benefit amount is set at 10% of the total available life cover at the time of death to a maximum of R50,000. This benefit is designed to assist with funeral related expenses.
South African life insurers have paid R63.7 billion to individuals who have experienced death, disability, or a severe illness in the family, preventing families from becoming financially vulnerable during such a difficult time.”
Terminal illness cover
Is another benefit that comes with your policy to cover you for terminal illnesses that you have been diagnosed with by a medical professional which means that you are likely to die within a year. “You have the choice to claim 50% or 100% of the life cover amount to use towards paying your medical bills, any debt you might have, or as you see fit,” says Baker.
The same will be applied should you fall critically ill and you need the finances to cover your medical bills. Keep in mind that if you take out 100%, your cover will end and the people who are covered under the policy will not be covered.
This will differ from insurer to insurer which is why it is important to read the terms and conditions that come with your cover. For example, most insurers are unlikely to cover you if you are taking out a policy while you are terminally ill. Always remember to analyse the features that come with your life insurance policy to see if it is the perfect fit for your loved ones.