Life Insurance in South Africa
The death of any person is a traumatic event for the people close to the deceased. His emotional consequences are obvious, but the financial impact can be just as destructive. , for example the deceased was the sole breadwinner between his wife and three children. But the deceased had an unpaid debt, payment responsibility for the family. These types of devastating after effects are taken care by the life insurance companies in South Africa.
Types-of-life-insurance in South Africa
Buying life insurance is considered by most as a good idea. It allows you to live in peace in mind that your loved ones will be financially secured after your death, or at least have a certain period of time during which they can get back on your feet. There are many types of life insurance on the market, and choose the one that suits you best can sometimes be a difficult task. Here is a breakdown of the four main types of life insurance that we see in South Africa:
The first type of life insurance offered in South Africa is the Credit life insurance. Credit life insurance is life insurance that pays a debt of one or more of the debt referred to in the death of the insured. Most financial institutions in South Africa are forcing consumers loans approved to take out life insurance on the loan in order to avoid non-payment in the scenario of the death of the consumer. Although it is perfectly legal for these institutions insist on the borrower’s life insurance, choice of supplier for you. Life insurance Loan recipient, not to be confused with the protection of income coverage, because he will have to pay a predetermined amount of money into your bank account if you are disabled or subtracts to the left, to the extent that you cannot in your work anymore. The second type of insurance coverage that is offered in South Africa is the term insurance.
In South Africa two types of Term Insurances ore offered: fixed term insurance and a decreasing term assurance. Fixed term life insurance is no longer very popular. This is a policy that you buy to cover you for a certain period of time at a fixed monthly rate. It is basically complete and is replaced by a universal life currently. Reduction of term life insurance is still very popular. Your monthly payment is reduced over time, as the skin. The decreasing term insurance is popular with respect to large loans, bonds and car protection. The third type of insurance that is offered in South Africa is whole life insurance.
Whole life insurance in Africa is just what it says to be. It is a type of life insurance in which you make a contribution for the duration of your whole life. Some of the policies give you the benefit to stop paying when you have crossed the retirement age, without losing the policy. Whole life insurance is a non-profit and has no monetary value. The fourth type of insurance policy that is offered in South Africa is the universal life insurance. It is the type of life insurance policy that is in many cases like the whole life insurance policy. The main difference between both of them is that in the universal life insurance the money in the form of premiums goes into an investment account. And in this policy you can pay extra premium in same month that will be added into your investment account.