Understanding Life Cover

Life cover—also known as life insurance or life assurance—is essential financial protection that pays a lump sum to your beneficiaries if you pass away during the policy term. It helps secure your family’s future and ensures peace of mind.

How Life Cover Works

Life cover is a contract between you (the policyholder) and an insurer. You pay a regular premium, and in return, the insurer agrees to pay a specified sum to your chosen beneficiaries upon your death.

Why You Need Life Cover

This payout can help your family by:

• Covering living expenses, school fees, rent, and mortgage repayments
• Paying off debts such as vehicle loans or credit cards
• Funding funeral or cremation costs
• Providing financial support if you're unable to earn due to illness or disability

Types of Life Cover Available

Common life cover options in South Africa include:

• Term Life Cover: Valid for a fixed period (e.g. 10, 20 years) and is often used to protect your home loan.
• Accidental Death Cover: Pays out only if death occurs due to an accident, often at a lower premium.

Key Questions to Ask When Choosing Life Cover

• What exactly does the policy cover—and what exclusions apply?
• How much will be paid out if you die during the policy term?
• How much will the monthly premium cost?
• What is the insurer’s financial stability and claims history?

It’s wise to compare multiple insurers to ensure you get suitable cover at a competitive rate.

How to Choose the Right Life Cover

• Select a policy that covers your family’s essential expenses and debts.
• Factor in inflation—your cover should increase over time.
• Review exclusions like suicide clauses, pre-existing conditions, or risky hobbies, especially in the first 1–2 years.

Live with Confidence — Protect Your Loved Ones

Life cover is more than just insurance—it’s about providing stability for your loved ones when it matters most. With the right policy, you give them security, dignity, and a way forward.