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  • You probably need LIFE INSURANCE. Here's why:

You probably need LIFE INSURANCE. Here's why:

PLUS: Let's get you a quote in 5 minutes

Author

MoneyMoves
August 22, 2024

Life insurance can be a game changer, providing crucial protection for your family and assets in the event of an untimely loss. But do you really need it? In this episode, we’ll cover:

  • What is life insurance?

  • Why should I have it?

  • How much do I need?

  • How do I get it?

  • How much does it cost?

If you prefer to watch us break it down, head over to YouTube for a 10-minute video where we dive into the details.

What is Life Insurance?

Out of all the insurance products out there, life insurance is the simplest to understand: You pass away, and your beneficiaries receive a payout. It’s that straightforward. The money is left behind for specific purposes, designated to specific people.

Why Get Life Insurance?

There are three primary reasons why you should have life insurance:

  1. Pay Off Debt: Your assets don’t disappear with you, and neither does your debt. If you leave behind an asset with an outstanding loan, your spouse or beneficiaries will have to cover the remaining debt (along with the monthly installment). If they can’t pay, the bank could repossess the asset and sell it at auction.

  2. Support Dependents: If people rely on your income, life insurance ensures they’re taken care of if your income is no longer available.

  3. Estate Duty: For estates exceeding R3.5 million in net assets, a 20% tax applies will be levied by SARS when you die. Life insurance can help cover this cost, so that the full value of your assets can go to your beneficiaries.

How Much Cover Do You Need?

The amount of coverage you need varies depending on your individual situation— your unique combination of debt, dependents, and assets. If you’d like to discuss your specific needs, feel free to book a call. We can work together to determine the right amount of coverage for you.

Want a quick life insurance quote? Submit your details via this link, and we’ll help you get started!

Where to get it?

There’s a saying in the industry: “Life insurance is life insurance”, meaning that life insurance as a product has no bells and whistles. Its as simple as it gets: if you pass away, the money is paid out. Given that life insurance is essentially the same across providers, we focus on two key factors:

  1. Affordability: Let’s get you covered as cheap as possible.

  2. Reliability: Ensure the company pays out when you die, without any fine-print drama.

The main players in the game are:

How much does it cost?

Your premium is based on risk. The higher your risk of passing away, the higher your monthly premium. Factors that influence your premium include:

  • Age

  • Gender

  • Smoker status

  • Profession

  • Qualification

  • Income

  • Intellectual labour vs physical labour

  • Travel for work

  • Marital status

  • Premium pattern* (standalone episode)

Episodes coming your way 🎬

So, what are we covering? Well, depends on who’s asking (literally!). Our aim is simple: Ask your questions, and we’ll cover them as best we can: to inform, educate, and entertain.

Season1 Topics

1. What is a TFSA and how can I use it to my advantage?

2. Can you explain the different types of investments?

3. I hear people are making money with Arbitrage. What is it?

4. Debt: Is it good or bad?

5. Life insurance - should I get it and why?

6. How big of a deal is compound interest?

7. Where should I invest my money?

8. Should I go the DIY route or use a financial advisor?

Who are we?😎

The Knowledge Chest

Paul holds an Honours degree in Financial Analysis from Stellenbosch University. With a career spanning investing, accounting, and education, Paul is committed to becoming the best financial planner in South Africa. Despite his many accolades, Paul insists that his greatest achievement is that he is dating a yoga teacher.

The Anchor

Ingrid holds a BA Honours in Journalism from Stellenbosch University. She is a self-diagnosed workaholic, excelling in various roles such as marketing, publicity, social media, and strategic partnerships. Ingrid's commitment to promoting wellness and balance extends beyond her professional endeavours, as she is also an avid yoga teacher.

The Magic Maker

Alwin holds a BCom in Business Management from Stellenbosch University. Alwin has a unique ability to make things happen - if you need something done, he’s your man! Alwin currently works in the alumni office at the university, connecting past and present Maties and ensuring a brighter future for the youth.

Connect with us📲

Feel free to reach out if you want to chat about finance (or even just chat!). We’re keen to get to know the community.

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