Life insurance provides the financial means to preserve your way of life, or that of your family, in the event of an accident, terminal illness or even death. We don’t like to think about ‘worst case scenarios’ but taking some time to consider the risks and having a contingency plan is like carrying an umbrella – it can’t stop the rain but can provide the much-needed financial protection during life’s storms. A lump sum amount is paid, if you’re terminally sick or die, to ensure your family is able to meet their outstanding commitments, e.g. house mortgage, private school or to maintain their current standard of living.
A case study
Ben was only 50 when he suffered a fatal heart attack, leaving behind his wife and their three children all under 10 years of age. Just before his death, Ben and his wife Jennifer moved into a new home that they had planned to renovate. Without Ben’s income, Jennifer can not afford to cover the mortgage, let alone the costs of the renovations. Thankfully, prior to buying their new house Jennifer insisted that both she and Ben upgraded their life cover. The lump sum payment she received soon after Ben’s passing was invaluable. It meant Jennifer wasn't forced to seek full time work to make ends meet. She was able to keep the family home and the children didn't have to change schools.