The biggest mistake you can make in life is to not take out a Life Insurance policy. Folks see it as an extra and unnecessary expense, completely overlooking the bigger picture and long-term benefits of this investment. That’s right, a Life Insurance policy is an indispensable investment and because your life and lifestyle will constantly change, it is of utmost importance to have a look at taking out Life Insurance sooner rather than later.
Entering the workforce
This is perhaps the best time to have a look at taking out a Life Insurance Policy. As a young and healthy person taking out a policy should be fairly cheap depending on your lifestyle, hobbies, and other social and health- related factors.
Also, conceding the company you work for offers Life Insurance as a benefit, it should not deter you from taking out your own personal policy. You can never have enough Life Cover.
Getting married changes the whole idea of you only having to think about and care for yourself. Financial obligations change in the sense that you are now working with a partner and most probably paying for things such as a bond, credit cards and other general household needs in and around the house.
In the case of applying for a home loan, your application will be treated with and handled more immediate if you add a Life Insurance policy as supporting documentation for your loan. The policy also serves as security should anything happen and you are unable to pay off your loan or bond.
The biggest fear for a mother or father is not being able to look after or being able to protect their children. After marriage usually comes babies and when entering the parenthood stage of your life you have to be financially secure. Children is responsibility that grow and also have responsibilities that grow with each stage of their lives. One of the most important things you will have to do as a parent will be to invest in your child’s education – from nursery school to tertiary education. Life Insurance will give you the peace of mind knowing that should you not be able to look after your child’s needs that you have taken the steps to make sure that your children is financially taken care of.
Debt & Divorce
Falling in and having to deal with debt can put huge amounts of pressure on your marriage and often ends up with couples in the divorce court.
Should you pass on having had any debt, your estate would then make sure that your debt is handled and your beneficiaries are not left behind with this burden.
In the unfortunate event of you having to get a divorce you won’t have the stability of two incomes anymore therefore it would be best to have security for yourself (in the case where your ex-partner decides to take you off their Life Insurance) and any children involved.
There are some events or transitions in your life where it will be imperative for you to take out a Life Insurance, not only for your own peace of mind but also to ensure that should anything go awry that there is some sort of back-up plan.
- Enzo Leigh Botes