Life insurance
Don´t leave your nearest and dearest unprotected!
The most important consideration when taking out a Life Insurance policy is making early provision for your life partner or closest family members in the event of your death, so that your relatives are not left facing financial problems.
Below is a brief summary of the two most common types of Life Insurance.
CUSTOMISED LIFE INSURANCE
When taking out a Life Insurance policy you can choose a level of cover that provides for one or more of the following situations:
- Payment of the insured sum upon reaching the age of 60 or 65 years.
- Payment of the insured sum in the event of death before the maturity of the policy.
- Payment of the insured sum in the event of total and permanent disability.
MORTGAGE INSURANCE
Situation: You are intending to take out a mortgage for a house you are buying or to renovate or extend your present house. On the basis of your income and the value of your home, you are given a mortgage. As long as are alive, your income should be sufficient to be able to pay the monthly repayments and interest.
By taking out life insurance and handing it over to the lending institution, your relatives are insured in the event of your unexpected death, so that the outstanding payments are made or that the outstanding balance is paid off in full.
Differences
The difference between the two types of Insurance described above is that the Mortgage Insurance policy only covers the financial risk, but does not provide a final payment, unless you expressly take out Insurance for this as well.
The premium for the first type of Insurance described above may well be higher, but always provides payment of the agreed amounts.
Premium payment
The payment of the premium for both of these types of Life Insurance can be made periodically, e.g. monthly, quarterly or annually, or with a single, lump-sum premium payment (also called the purchase sum).