In a competitive market where insurers constantly try to enhance benefits to give them the edge over the others there are important facts that never change.
The amount needed.
Regardless of the product, you decide on based on added benefits, etc. The amount needed to cover outstanding debt, executor’s fees, taxes, capital requirements and more remains the same and needs a proper financial needs analysis to determine an accurate amount.
Funeral Cover.
There are immediate costs that will have to be dealt with like the funeral and income for dependents left behind while the estate is dissolved.
Disability Cover.
Not typically what you think about when you hear the word “Life Cover” but just as important.
Can be divided into two categories;
Lump-sum.
Pays out an amount based on the severity of the event or the full insured amount. I highly recommend that you always take the most comprehensive benefit making sure that there are more claim possibilities. Most comprehensive benefits cover you for your nominated occupation and pays proportionally if you can still work but lost certain functions of your body.
*The above depends on various rating categories why it’s crucially important to consult your financial adviser.
2. Income Disability.
Where the lump- sum will be used to cover outstanding debt, renovations to accommodate the disability or a new car, income disability pay an amount every month to the date you chose at inception.
Here it is also important to determine what the waiting period will be before this benefit kicks in at claim stage. A good question to ask yourself here is; “How long will I cope if I don’t earn a salary?” The amount in your Emergency fund will greatly influence this waiting period if you do have this in place?
The above is but a short summary of the important facts to consider when purchasing a life product and it remains critically important to remember that only an accurate financial needs analysis can determine the scope of cover needed.
One of the major benefits of purchasing coverage through Optimum is that we are Independent, meaning that we deal with all the major role players and can tailor a plan suited to your specific needs and lifestyle.
Please speak to your adviser.