You might think that putting plans in place in the event of your death is a macabre idea. And, in truth, it is. But death is inevitable, and preparation is necessary. We live in uncertain times. No one knows when they’ll be meeting their maker.
Think about those you’ll be leaving behind. What is going to happen to them? If you haven’t made financial provisions for your loved ones in the event of your death, you’ll be doubling their sorrow.
Life Cover: a want or a need?
Most people see life cover as a want more than a need. They only take out life cover if they have money left over at the end of the month after satisfying all their other financial obligations.
What they should be doing is tightening their belts and making sure they have life cover. Sacrificing a few restaurant meals could be enough to take out a life cover policy and keep up to date with premiums.
The question remains… why do you need life cover?
Few of us can say that we live debt free. Homeowners have a bond that needs to be paid to keep a roof over their heads. Car owners have received finance and have a monthly payment that doesn’t disappear if they die. Those who’ve been a little too liberal with their credit cards have monthly bills they need to pay.
Failing to pay your debt has serious implications. Interest is slapped onto the total. In the worst-case scenario, the assets could be repossessed. All the payments you made, while you were alive, would all have been for nothing.
You need life cover so that should you die your debts will be paid off in full. This eases the financial burden on the loved ones you leave behind.
The loss of your life can have massive financial implications for your dependents. This is especially true if you are the main breadwinner in the household. What will become of your children if you die? They need to be looked after.
This requires money. It’s essential to make sure that make provision for their education. Despite you no longer being there, their needs will continue. As a parent, don’t you want to ensure that their lives and futures are secure?
You need to have life cover so that your dependents have a lump sum that can be invested for their futures. This could take the form of a trust from which money can be withdrawn to pay for education and other expenses.
Think not only of how much money your dependents need in the short-term but also how much will be needed further down the road. The last thing you want is for your children not to attend university as there were insufficient proceeds from your life cover.
3. Here today, gone tomorrow
In our 20s and 30s, we feel invincible, as if death couldn’t possibly be around the corner. After all, it’s old people that die. That is a naïve assumption.
One need only look at the road death statistics and murder rate alone to know that it’s not true. Be realistic about the fact that there’s every possibility that you could die before your time. Don’t assume that it only happens to others.
Have your house in order for the event of your untimely death. This includes having life cover to ease the burden of your passing on your family.
There are several life cover options for you to choose from. Each product offers different benefits. Make an informed decision by asking a broker or financial adviser for guidance. You need to understand the terms and conditions of the policy. By consulting an expert, you can get life cover that suits your needs. This will ensure that your loved ones’ physical needs will be met even after you’re no longer with them.