Providing survivors with sufficient funds, should you suffer a premature death, means planning ahead and taking out some type of life insurance. All insurance money is in a lump amount, and that means it can be used to address a number of things. First and foremost, are the immediate expenses involved with estate settlement and funeral costs. Later, there will be the long-term needs of survivors. One advantage of a life insurance policy is that it allows you to make needed provisions for your dependents and survivors, and some policies offer disability benefits, as well as a retirement annuity.

There is a wide variety of life coverage in South Africa. Included in this are policies that offer term, whole and universal life insurance coverage.

With term life insurance, your coverage will only last for a specific span of time. When that term of time is over, your policy simply ceases to exist. If you only need extra protection for a short span of time, this policy is ideal. If you feel you only need your life insurance to see you through paying off your home mortgage, then a term policy would work extremely well for you. Being short term coverage also makes the life insurance more affordable, but there is a down side. It does not have a cash value or any investment potential.

Whole life insurance coverage is somewhat different. It is more comprehensive. A payout is guaranteed with this kind of coverage, and it expires upon the policyholder’s death, or when the policy is given up. With whole life insurance, once you are covered, you do not need to worry about becoming uninsurable down the road. The insurance company invests the premium you pay, and you can borrow against the policy as soon as there is cash value. Of course, the cost is higher than a term life insurance policy.

An investment component is included in a universal life coverage plan. A cash value will be credited to premium payments that are above the cost of the insurance. Each month you receive interest on the cash value. Although there exists a possibility for rapid growth, it is not guaranteed.

There are several life insurance companies in South Africa. One of those companies is1LifeDirect. Although they have not been around for long, they have made a big impact by providing customers unique products and low monthly premiums. They use a direct sales model, which cuts out the middleman, allowing 1LifeDirect to save their customers on the cost of premiums. Taking its expertise from the medical aid industry, Discovery Life Insurance generates excellent insurance products, coupled with a wonderful loyalty program.

One of the bigger names in the insurance industry, Liberty Life Insurance offers three premium options that can accommodate any need. Moreover, one of the largest varieties of products on the market comes through RMB Insurance. Finally, Sanlam Insurance can provide both personal and group life insurance coverage.

Graham McKenzie is the webmaster for a leading South African Life Insurance provider. For more information visit: http://life.insurance123.co.za/

[tags]Insurance, Finance, Life Insurance, Life Cover, Health, Death, Disability, People, Family[/tags]