October 2006 - No one wants to put a monetary value on their life. Life is
priceless and too valuable for that. So it follows that you should always be
assessing your life insurance requirements.
However, life insurance is a necessity, not only for peace of mind, but as a
means of protecting the financial security of your family, and making sure they
are safeguarded in the untimely event of your death.
Said Lenerd Louw, CEO of 1Lifedirect, South Africa's first truly direct life
insurer, "The task of choosing a life insurance policy can be confusing and
somewhat daunting.
"There are many options to consider, many policies to decipher, and at the end
of the day, every family has different needs and requirements."
So how do you go about choosing a life insurance policy that is right for you
and your family? Assess your life insurance requirements and needs with the following key
questions:
Do you need a life insurance?
If you have people who depend on you, you need life insurance. If you have debt,
like a house that is bonded to a bank or vehicle repayments, you need life
insurance. Life insurance helps protect your dependents and fulfill the
obligations that you leave behind.
Do you really need to use a broker or can I go the direct route?
When choosing whether to use a broker or go the direct route, it is important to
keep in mind that brokers earn ongoing commission, receiving monthly
administration fee payments as well.
These payments are made to the broker for the lifetime of the policy. Because
the direct life insurer does not incur these costs, the savings can be passed on
to the client.
With 1Lifedirect, for example, you can save up to 22.5% on broker commissions
and what's more, 1Lifedirect customers will be covered within 20 minutes without
needing a medical examination.
Both insurance options offer benefits, but at the end of the day, it is up to
the consumers to make the decision on which route they choose, based on what
suits their lifestyle needs.
How much life insurance do you need?
Everyone's answer to that question is different as your personal situation is
unique. Many factors influence the amount of life insurance you need, including:
marital status, number of children, outstanding debts and how much you can
afford to pay for premiums.
A 1Lifedirect relationship manager will be able to guide you through this
process and based on the factors above, will be able to recommend the right
amount of cover and the best price.
For example, with 1Lifedirect, a 30 year old female could get R1-million worth
of cover for as little as R89 per month*.
What is the difference between Pure Life Cover and Credit Life Cover?
Usually there are two types of life insurance to choose from – Pure Life and
Credit Life. With Pure Life Cover, the client's beneficiaries will receive the
value of the life insurance policy after the client's death.
Credit Life Cover will take care of any outstanding debt the client may leave
behind, such as a bond or vehicle finance agreement.
Depending on your personal needs, you would be able to purchase these options
either together, or on a stand alone basis. Life insurance does not have to be a
complicated exercise and can in fact be successfully arranged and implemented
over the phone or internet.
"At 1Lifedirect, we believe that life is for living and shouldn't be spent
hassling with insurance, and that is why we have chosen to make the process of
acquiring life insurance as simple and straight forward as possible, ultimately
saving consumers money and valuable time", said Louw.
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