(and don't ignore disability!)YOU know that you need life cover. But how much life insurance do you need?
Although there is no real restriction on the amount of life insurance you can buy, companies do look at the reason you want cover. If it is excessive, they could offer you a lower amount of cover.
However, there is a restriction on disability cover.
You could easily be over insured and be paying for cover you can never claim!
It would make sense to call me and see if you are in this position.
Single? - You really don't need life insurance – or do you?
If you have dependants you support or have any sort of bond or HP and loans (especially if you share a home with a boy or girlfriend), you should at least have enough insurance to make sure that you don't leave them with a liability on your death.
Remember, the younger you are when you take cover, the lower your rate and the easier it is to get cover. Leave it and you may never be able to get cover if your health deteriorates or if you can, it will be expensive.
So, invest in life cover while you are young and healthy.
At some stage in your life you will need life insurance.
Perhaps you should start a plan today?
Single Parent? - You have the highest need of all, to consider life and disability insurance for you're the care giver, breadwinner, cook, chauffeur, and so much more.
Yet nearly four in ten single parents have no life insurance whatsoever, and many who do have life cover, say they need more.
With all this responsibility resting on your shoulders, you need to make doubly sure that you have enough life insurance to safeguard your children's financial future. After all, if your income stops what will you do? What will happen to your children?
Please call me URGENTLY!
Married? - Your responsibility increases with a spouse. Most families depend on two incomes to make ends meet. If you died suddenly, could your family maintain their standard of living on your spouse's income alone?
Probably not.
Life insurance makes sure that your plans for the future don't die when you do.
You've made a commitment to support one another through thick and thin! That is never more important than on the death of either of you. To leave an emotionally devastated survivor, with the possibility of loosing your home, car and other assets – simply because of no money, is completely unnecessary (in fact selfish).
Life Insurance will prevent that from ever happening.
New Parents? Congratulations!
But you now face a host of important decisions that come with the responsibility of caring for a family, including how you will provide for your loved ones if something should happen to EITHER of you.
What should you do?
- First, evaluate your current policies. You may find that it will be worth your while to investigate new cover.
- Next, consider how much cover you need. Essentially you need to provide enough to replace the income you are now contributing to the family. Again, that goes for both of you!
- Then ensure that you have the correct beneficiary nominations with your policies. You may wish to investigate the formation of a trust?
Your life is going to change in wonderful ways! Just make sure that your family is financially protected. You are going to need all the peace of mind you can get!
Family? Would you want your loved ones to loose all they have on your death? It can so easily happen. Not only will your income stop, but there are many expenses that will have to be paid. Costs like CGT, estate duty, income tax, funeral costs and debts you may owe. With no money, how can your children get the education they deserve?
How will your spouse afford to keep your home?
How will your family be able to continue in the lifestyle you have given them?
Your death will be a devastating financial blow.
Why add a financial concern as well, when you can so easily prevent it?
And have you insured your most valuable asset – your spouse?
Retired? - If you died today, your spouse will still be faced with daily living expenses.
For up to 30 or more years!
Would your pension alone, keep your spouse in the lifestyle you worked so hard to achieve?
And what about leaving an inheritance?
You need life insurance!
A Non-working Mother (or Father!) - Because you have no salary does not mean you make no financial contribution to your family! On the contrary, have you any idea what a full time au pair costs? Or a driver? Or a live in cook? Just how will your spouse afford them if you are no longer around?
Could your spouse afford to pay someone for these services?
So often only the breadwinner is insured, yet the vital contribution of a stay-at-home spouse is ignored until it's too late.
So, you certainly need life cover- for both of you!
Life insurance makes sure your family can afford to keep their way of life if either of your dies.
DON'T IGNORE THIS VITAL ASPECT OF YOUR FAMILY'S FINANCIAL SECURITY!
| However, irrespective of your need for life cover - you need to make sure that if you cannot earn an income through illness or disability - you will not have to rely on someone else for money, maybe for the rest of your life! |
Your Group Life Cover
If you think your employer's plan will cover you; think again!
Say you earn R10,000 per month. Your life and disability cover is probably around R360,000 (3 X annual salary) This is almost always taxed, meaning you land up with around R270,000.
R270,000 will provide a monthly income of around R1,125 per month!(at current interest rates).
Almost 9 time LESS than you are earning today!
And if you leave your company, you loose the cover.
You definitely need cover outside of your company plan.The earlier you start - the less you pay in the long-term.
Turn age 40 and your rate increases substantially.
Life insurance usually costs less per thousand rands once you get into higher coverage amounts (e.g. R500,000).
| Here is a calculator to assist you in determining how much life cover you should have. |
This is a guideline only. It does not include the effect of tax or inflation.
You need professional advice - so please call me.If separate cover is too expensive - at least consider as a start - a joint-life policy, where money is paid on the event of the first death. The premiums are reasonable.
Use the calculation above to work out the cover your spouse needs.
Simply substitute their figures for yours. You may be enlightened!
With the current legislation in place, a Financial Adviser must do a needs analysis with you.
If s/he does not, get someone who will. Only by doing such an exercise will you ensure;- you have the correct amount of cover in place
- you are not over-insured and wasting money.
- you can compare different rates and benefits and buy the cover that suits you.
You believe in insurance. Your house is insured.
Your TV is insured
Your car is insured.
You pay for the house, the TV, the car and all the monthly bills.
EVERYTHING DEPENDS UPON YOU.Yet, are you fully insured?
Ask yourself;
- Will my dependants have sufficient funds to meet their daily and future needs if something happens to me?
- Can my debt obligations be met, including income tax and estate duty on your death?
- Will my spouse be able to retire if I die today?
If you would like an indication of what Life, Disability and Severe Illness cover will cost, please complete the WRITE TO ME REQUEST FORM and mail it to me.
I will reply with some values for you.
|
pyburn@peterpyburn.co.za
Especially to determine How Much Life Insurance You Need.
Life Insurance
