Wednesday, April 1, 2015
Many think that life insurance is an unneccesary expense as the person paying for it will never benefit from the pay out of a claim. Life insurance is however inportant to have for those with dependents or businesses. When it comes to life insurance, there are various things to consider.
Derek Wilson, Head of Hippo.co.za, says, “ If you don’t have dependents you might not need life insurance, but you may need disability or dread disease cover. And if you aren’t in debt, life insurance can form an inheritance for your loved ones.”
Types of life insurance cover
Whole of life insurance cover lasts for the entire lifetime of the policy holder, and although payments will cease after retirement, the cover will remain in place. This type of cover has a guaranteed payout benefit, better future value, and the policy holder is able to surrender or cash-in at a future date and can also borrow funds against this cover.
Fixed term life insurance cover enables you to choose from cover for the next 10, 15 or 20 years. Should you pass away after the term, the cover will most likely cease. This cover is ideal for homeowners who wish to have their mortgage costs covered should they pass away.
Decreasing term life insurance is a type of cover where the premium amounts as well as payout amount decrease over time. It is most likely that your homeowners bond payments will decrease over time, and as a result decreasing term life insurance ensures that you are not “over-insured” on your bond amount.
Universal life cover is an option for those who wish to add an investment component to the cover. For every premium payment made, some of the money is invested which means that the policy will most likely have more value in future.
Credit life insurance covers against debt such as personal loans, credit cards and vehicle finance loans. The policy will cover your debts in the event that you should pass away so that your family will not be burdened with debt.
Renewable premium life insurance is based on the unpredictability of future health circumstances and increases by a specified amount at a specified time. The policy holder’s cover is renewed based on their specified increased amount without them being requalified in order to remain covered.
Age rated life insurance increases as you age. This means that the premiums will become more costly in the long-run, but initially you will be paying the cheapest premium depenent on the rates of the specific life insurance provider.
Compare from a range of life insurance providers.
“Hippo.co.za offers a life insurance comparison service, where you are able to compare quotes and benefits from a range of South African life insurance providers, across the different types of cover, in order to choose the best cover suited to your specific needs and budget,” says Wilson.
Established in 2007, hippo.co.za is South Africa’s leading comparison website that helps consumers save money by comparing a range of SA providers across financial products such as car insurance, home insurance, life insurance, medical and more. Hippo is free to use and saves consumers the time and hassle of shopping around for the best deal since the Hippo.co.za website instantly retrieves real-time quotes from the different providers using the latest Internet technology. At least 8 out of 10 people could save an average of R427* per month on their car insurance.
Hippo.co.za makes money by simply charging its partners a fee when a customer chooses to find out more about their products. The results consumers see, and the order in which they are presented, is in no way influenced by the fee hippo.co.za charges its partners or any other factors other than the price of the product being compared.
Hippo Comparative Services (Pty) Ltd is an authorized financial services provider (FSP number: 16357).
*Based on a representative market research survey conducted by Kaufman Levin Associates, on behalf of Hippo.co.za in May 2014. Risk Profile Dependent.