The demand for better and more affordable life insurance is on the rise across South Africa, and experts believe there are two main reasons behind the increase.
The first one is the increase in awareness about how life insurance can be the perfect instrument for protecting the financial future of family members.
The second reason is affordability. Life insurance is still relatively expensive, but the available policies have seen a steady decline in premiums. Insurance companies also calculate risk factors and produce quotes differently, which is why more people turn to life insurance to protect their family’s financial future.
Life insurance can act as an extra layer of protection for the entire family. Many families in the country have one breadwinner responsible for bringing in all the income. This is a serious risk that needs to be mitigated since the loss of that breadwinner often leads to the catastrophic failure of the family’s finances.
This is where a good life insurance policy comes in handy. When the breadwinner is insured, it is up to the insurance company to provide payments to help the family survive such a difficult time. The type of payment can be adjusted – lump sum and instalments are the most popular ones – depending on the specific needs of the family.
A lot of life insurance policies on the market are designed to kick in immediately in such event. The wealth of options customers now have when choosing life insurance also makes getting that added layer of protection easier.
Another important thing to note about life insurance today is how there is always a policy for customers, regardless of the customers’ specific needs. Life insurance is incredibly flexible too, and the customers now have more control over the way their life insurance is configured.
The extra flexibility is something that has been around in other insurance markets. Trying to get quotes from multiple insurance companies, for instance, is now easier with tools like Intelliquote helping customers. The same can be said for customizing the insurance policy itself.
The flexibility doesn’t stop there either. Customers can fine-tune the way the insurance payout is executed as explained in the previous part. For maximum protection, many life insurance buyers now opt for long-term installments over a period of several years; it is a way to substitute the family’s lost income.
Despite the many options, however, life insurance can still be expensive for some. Fortunately, there are more things to do in order to make life insurance affordable. Adjusting the coverage or payout amount is one of the first steps customers can take to reduce their life insurance premiums instantly.
Insurance companies that also offer other insurance policies (i.e. health insurance and car insurance) are more likely to provide additional discounts to customers with multiple policies. This too is a money saving tip that customers can take advantage of.
There is always term life insurance. This type of life insurance policy offers the same comprehensive protection, but only within a certain term. That added term greatly reduces the insurance premium for term life insurance.
As for whole life and universal life insurance, there are ways to make premium payments more manageable. Borrowing against the cash value of the life insurance policy is an alternative. Alternatively, customers can be more proactive in reducing their risk factor to earn a better premium.
The trend itself is interesting. People buying life insurance to better secure their family’s financial future is a move towards the right direction. If the trend continues, it is a clear signal of an increasing personal finance awareness as well.
Life insurance is an essential financial tool that provides security and peace of mind for individuals and their loved ones in Canada. With numerous options available, choosing the best life insurance policy can be a dunting task. However, it’s crucial to consider factors such as coverage amount, premium affordability, and the reputation of the insurance provider. By carefully assessing your requirements and consulting with an insurance professional, you can find the best life insurance in Canada that offers the right level of protection and financial security for you and your loved ones.