We have heard it hundreds of times, if not thousands. Whether from television, radio ads, in magazines or from financial advisors: “Get life insurance! It is the responsible thing to do!” And it is. But many view it, quite fairly, as money that could be better spent on food, school fees, bills and clothing.
There are also a lot of other standard excuses that people use to explain why they do not need life insurance, like they are single, or their significant other has life insurance. No matter what your situation may be, people depend on you.
So why should you pay that couple of hundred rand every month for life insurance? Here are the five main reasons.
1. You Have Children
This one is a no-brainer. It is all fair and well to say that you need to put food on the table and pay your children’s school fees, but who will do it after you are gone? Are you sure that your children will get the education and environment that they deserve should you die? Many couples feel assured that if one of them has life insurance, the other doesn’t need it. But what if the parent without life insurance meets an unexpected end? You will obviously not be able to claim from the surviving parent’s life insurance.
2. You Own an SMME
A great percentage of the population in South Africa work for small, medium and micro enterprises. Jobs are precious and very hard to come by. Would your employees lose their livelihoods in the event of your death? If you have a partner in the business, you could take out a life insurance policy that would benefit them in order to maximize the potential that your business will prosper.
3. You Care for a Disabled Family Member
Many of us live with the reality of having to care for a disabled family member, and regardless of whether the disability is of a mental or a physical nature, it is a massive responsibility that cannot be ignored. Care for the disabled is expensive. If you don’t care for them, will another family member be willing to do it? Or will you have to make sure that the bill for an institution can be footed?
4. You Are Married or Have a Life Partner
Couples living together often share a mortgage or the rent. Cars, household supplies and other expenses could be shared as well. Your partner might not be able to cope without you financially. What if your partner is a stay at home parent, or happens to be between jobs at the time of your death? The emotional difficulties are already a lot to bear, without financial stress being added to the mix.
5. Your Parents
Probably the least considered dependents, your parents are exceptionally important to keep in mind. Even if you are young and unmarried, your parents might be depending on you to assist them financially in their old age. Also, if they had signed surety on a study loan for you, they might end up with extra monthly debt should you not be there to pay it anymore.
Endless other reasons to get life insurance can be added to this list: your beloved pets, your charity and philanthropic causes, outstanding debts, or just providing for a rainy day.