Chances are pretty good that you didn't have life cover when you were 21. Though you were an adult by that age, you didn't yet have the many responsibilities and commitments that we associate with being grown up. There wasn't much need for life insurance, because there wasn't very much to protect. Eventually though, you reached a point when it became necessary to consider life cover and other forms of protection for the ones you love. Perhaps it was when you got married, or when you had your first child - it's different for everyone.
When last did you think about life insurance? Have your circumstances changed? Do you have too little cover? Or too much?
Here are 5 key life events that should spark some thought about if you need life insurance:
1. Marriage
Going to put a ring on it? Found the person of your dreams? When people get married two lives combine and that means twice as much debt, twice as many lifestyle costs, twice as much complexity. Should anything unfortunate happen to you, that could be a significant burden to leave to your spouse, so consider life insurance that covers all those needs in your absence. Not the marrying type? You don't need a legal certificate to prove that you are committed to someone for life, but if you are, get them covered.
2. Kids
For many people, it's around the time that they're expecting their first child that they have a life insurance lightbulb moment. Holding a small child, it's impossible to escape how vulnerable they are, and it eventually dawns on you that they would be in real trouble if you were no longer around. So, life insurance is an intelligent step towards providing for them, but how much? Consider what is needed for your children to continue living a lifestyle that you want them to, as well as future education costs. Do this calculation every time you have another child and adjust your life cover as necessary.
3. Home loan
A home loan will probably be the most significant debt you take on in your life, and it's a long-term commitment. Your home loan provider may have required you to take out insurance on your loan when you signed for it, but if not, make sure your life insurance package is sufficient to cover your home loan debt. Not doing so could expose your family to unmanageable debt.
4. Retirement
So, you're on the brink of retirement and gratefully you're alive and well. Do you really need all the life cover you're insured for? Take stock of your retirement funds and measure them up against your desired lifestyle for the rest of your life. If something were to happen to you, would your loved ones have enough?
5. Home owner
Remember that house you bought earlier? Well, you can certainly call yourself a homeowner, but in reality, you don't 'own' that house until you've paid off your home loan debt. Once you've done that it's time to pop a bottle of bubbly, but it's also time to reconsider your life cover.
Are you in the game?
If you find yourself at any of the life stages above you might be wondering whether you shouldn't apply for life insurance, or at least look to save money on your current insurance. Simply's no-fuss online quote takes seconds, and offers you Flexi Family Cover (for you and your nearest and dearest), Flexi Domestic Cover (for the helper who has done so much more than help), or Flexi Staff Cover (for your employees and their families) at revolutionary value-for-money.
*None of the above constitutes financial advice. Please contact your financial advisor for more information.
Simply Financial Services (Pty) Ltd is a registered financial services provider (FSP 47146). T&Cs online.