Create generational wealth with a perfect insurance plan

Create generational wealth with a perfect insurance plan. Image Credit: AdobeStock

Create generational wealth with a perfect insurance plan

Protect your family’s progress through life, creating generational wealth ‘starts with me’

Create generational wealth with a perfect insurance plan

Create generational wealth with a perfect insurance plan. Image Credit: AdobeStock

Creating generational wealth can seem like an out-of-reach idea for the average South African, yet there are ways to achieve it, if not in our lifetime, then definitely in the next generation. We can take the right financial steps today to empower the next generation to start creating wealth.

If the past 18 months have taught us anything, it is that life is unpredictable. Understandably, the well-being of family has been top of mind for most people as we look into an uncertain future. 

It starts with a plan 

One of the proven ways to create generational wealth is to take out life insurance so that when you pass, your family has a lump sum amount, to use for daily expenses or to grow wealth. This means the financial decisions you make today should be deliberate, by making provision for the future – for while you’re still alive and when you’re no longer around.

Most people are aware of the benefit of having funeral cover in place, however, life insurance is not only about death but more about protecting your family’s progress through life. Good protection means that you have the right policies in place, to help your family cope with financial commitments if you pass away or are unable to continue working and providing for them whilst alive.

Good protection = the perfect insurance cover plan for YOU

Depending on where you are in your life, good protection looks different from person to person. The perfect insurance cover plan is personalised, flexible and reviewed regularly. Your perfect plan could be a combination of the following:

  • Life Cover: Pays a lump sum to your chosen beneficiaries in the event of natural or accidental death. Your family can use a payout from your life cover policy to create their generational wealth by using the money to pay off any debts, such as a home loan, pay for your children’s education or start a business. With 1Life, you could qualify for up to R10 million in life cover.
  • Funeral Cover: Pays you or your policy beneficiaries a lump sum to cover the cost of a funeral, once a valid claim is made. With the right funeral cover in place, your family can give you a dignified burial and service without incurring extra costs or taking on additional debt.
  • Disability Insurance: Pays out in the event that you are permanently disabled by an illness or accident and are unable to earn a living. The payout from your policy can replace all or some of your income and take care of additional expenses to cater for your disability. With 1Life, you could qualify for up to R10 million in disability cover.
  • Dread Disease Cover: Receive a lumpsum payout if you’re diagnosed with a specified life changing severe illness, to help cover medical expenses or basic living expenses. With 1Life, you could qualify for up to R4 million in dread disease cover.

Remember, it’s not about picking one type of insurance over the other, each one has its role to play. In fact, 1Life has a policy that makes getting the right combination of cover easier, where life and funeral cover are bundled into one convenient policy.

Ensure continuity through financial education

Receiving a large amount of money can be overwhelming, so it is important that you protect your family’s future wealth by teaching them, today, how to manage money. Without proper money management, it is impossible to create wealth. It starts with you. Teach your loved ones lessons on never spending more than you earn, or the value of paying off debts or being money smart, etc. 1Life’s Truth About Money offers you an online financial educational course that can kickstart you on this journey. This way, you know they will do the right things when they receive the payout from your life insurance policy. 

1Life Insurance Ltd is an authorised financial services provider (FSP licence number 24769).