Why life insurance and dread disease cover are essential

INSURANCE of any kind is a grudge purchase, and perhaps life and dread disease even more so because death, or being permanently incapacitated and unable to work, is not a pleasant thought.

- NICOLA MAWSON

Yet, either a critical illness diagnosis or death will “not only have an immense emotional impact on your family but a financial impact as well,” said Corli Basson, business manager of Underwriting at Life Insurance.

She said that life cover payouts can be used to cover daily expenses such as food, clothing, school fees, and rent/home loans to safeguard your family’s financial future and build generational wealth.

“Life cover will protect your fam-ily’s lifestyle and financial future should you pass away.”

Life insurance can also cover set-tling debts.

Managing executive of Absa Life, Eugene Strauss, said: “It is common practice to thanks to acquire life insurance policy to them when taking out a bond. This ensures that in the event of your death, the outstanding bond balance is paid off directly to the bank, protecting both you and the lender.”

Kia Brokers managing member Gerald Kahn explained that life cover was also dependent on life cycles such as whether debt and children’s education needed to be covered at that stage.

“Bidvest Life’s 2023 Claims Report shows that millennials were 55 times more likely to claim their income protection benefits than their death benefits during the year, while also accounting for 50% of all income protection claim, but representing just 12% of death claims.

Yet, many life insurance and dread disease policies have exclusions, such as a previous heart attack, depending on their risk profiles.