Life insurance is a specific category of insurance that covers you in the
event of your own death. It usually pays out an insured sum to whomever you
choose to nominate in your life insurance policy. In insurance industry
parlance, life insurance is also known as assurance, to distinguish it from all
the other forms; the difference being that insurance covers events that may
happen, and assurance events that will happen. As is the case with all insurance
policies, the sum assured is payable in return for the regular payment of
monthly premiums. The policy holder sets the sum of money that he or she wishes
to be insured for, and premiums are worked out accordingly.
Life insurance is usually taken out with the idea of having an amount
of money paid out upon the death of the policy holder, but it can also cover
other events, like permanent disability. It can also be used as an investment
policy, where a maturation date is set, and the insured amount is paid out to
the policy holder before he or she actually dies. The former type of life
insurance is known as a protection policy, the latter as an investment policy.
As a general insurance industry standard, certain events are usually
specifically excluded from the cover provided. For example, the policy will not
pay out in the event of the policy holder committing suicide, nor should the
holder die as a result of an act of war. Life insurance policies are thus
clearly designed to cover death as a result of "normal" life events.
Insurance companies work on average expected life spans when calculating
premiums, and this comes into play when you take out a life insurance policy.
The later in life you take out an assurance policy, the higher the premiums will
be, as it is calculated that you will pay monthly premiums for a shorter period
of time than if you take out the policy when you are younger. This is assuming
that the assured amount is the same in both cases.
You can also set a finite term for life insurance, known as term life
insurance - in this case you are only covered in the event of death during the
defined time period. This is a different type of life insurance to so-called
permanent life insurance, which continues until eventual death, or until the
maturation date is reached.
Life Insurance Companies In South Africa
Liberty Life Insurance Products
|Life insurance giant Liberty Life offer a range of top quality long term insurance products. If you are looking for life cover then you must get a quote from Liberty if you are to make an informed decision.|
Momentum Insurance Products
|Momentum offers 3 different life insurance products to cater for most eventualities.|
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