Life Insurance: who is it for?

Life insurance is a contract between the policy holder and the insurer, where the insurer agrees to pay a sum of money in the event of critical illness, disability or death. If the holder dies, the money is paid to a designated beneficiary, usually a spouse or family member.

Types of life insurance

Life insurance can be categorised into two main types. These are term and permanent life insurance. Term assurance provides life insurance coverage for a specified term of years in exchange for a specified premium. Permanent life insurance is life insurance that remains in force until the policy pays out.

Who is life insurance for?

Life insurance is recommended for many people, particularly those with families who are dependent on them. Life insurance payouts replace your income and can help your family meet their day to day living expenses. Life insurance can also protect business owners in the event of a fellow owner or key employee dying. Single people who provide financial support for aging parents or siblings also use life insurance.

Shop around

As is the case with most insurance products, life insurance premiums can differ considerably among insurers. Get quotes from at least three separate insurers and compare rates, fees and terms.