What is Life Insurance – A Few Tips on Buying Life Insurance?
When considering life insurance, it is helpful to understand just what is Life Insurance. Essentially, life insurance is simply a contract between an insurer and a client, in which the insurer promises to cover a designated beneficiary an amount of money upon the demise of that client. Depending on the contract, death benefits may be paid out to the beneficiary, or an immediate family member such as a spouse or child, depending on what type of contract was agreed upon. In addition, certain events like critical illness or terminal illness may also trigger coverage. If you are looking to purchase a life insurance contract, there are many different approaches you can take to help you get just the right deal.
Before shopping for life insurance, it is important to understand exactly what type of policy type you are looking for. Typically, individuals look for a policy type that will cover them in the event of their untimely death. There are two main types of policies, which are term and whole life, and both provide very similar services. Term Life Insurance contracts are usually purchased by those who expect that in the event of their untimely death, they would not have enough money to cover costs such as debts and funeral expenses, as well as provide funds for their dependents. A whole life policy is typically purchased by individuals who expect to receive a monthly income from the policy, and want to make sure that should that income decrease, the insurance company will still be able to provide funds to their beneficiaries.
There are a variety of insurance providers in South Africa. According to statistics the list below is the Top 10 Life Insurance Providers:
- Old Mutual
All of the companies mentioned above is trustworthy firms to do business with, your finances will be in good hands.
When you know which type of policy you want to purchase, you can request quotes from various insurance providers and compare each. It is the best way to find out which company will provide you with great benefits at the lowest monthly premium.