Types of life insurance policies

Life is full of surprises, some exciting, others not so much. And while it’s impossible to be prepared for them all, it is possible to put precautions in place to help you when the not-so-happy hit.

Whether you’re married, have a family or are starting your own company, consider getting life cover.

Should you pass away, your cover will be paid in full to your beneficiaries. The payout can be used to clear any outstanding payments and pay day-to-day expenses and any future costs.

Different types of life insurance cover:

1. If you’re young, single and just starting your career, you may rather want disability cover or serious illness cover. These long-term insurances will take care of you financially should you become disabled, or are diagnosed with a critical disease, and are no longer able to work.
2. And if you are concerned about the financial burden your passing may place on your loved once, you consider funeral cover.
3. Another option is salary protection. This short-term insurance acts as a safety net while you can’t work because of an injury or illness. Unlike disability and serious illness cover that gives you a once-off payout, salary protection pays you a percentage of your monthly salary every month until you’re able to return to work, or until retirement.

Qualifying for life cover

Whatever cover you’re considering, the amount you qualify for is generally based on a number of personal factors, which also affects your monthly repayments, your type of cover and the amount you’re insured for. Always be aware of any exclusions in your policy. Your bank can help you here.

Knowing how much cover is enough is no easy task. This depends on your personal circumstances, and only a professional financial planner can give you a clear idea of exactly how much you need.