Individual Life Insurance Solutions
Life insurance can be a simple answer to a very difficult question, “How will my family be affected financially when I die?” This is a subject none of us really want to think about, but if we have someone financially dependent on us, it’s one we really can’t avoid.
The purpose of life insurance is to pay a lump sum benefit after you die, providing your loved ones with financial security should the unthinkable happen.
Protecting your family through the different stages of your life
As we progress through life, we may need life insurance to address the changing risks our families may face. Here are some examples of when life insurance may be important or necessary
Most single people don’t have any financial dependants but there are exceptions.
If you’re supporting parents or siblings; or carrying significant debt you wouldn’t want passed on to family members, you should consider life insurance.
Many families depend on two incomes to make ends meet.
If you died suddenly, would your spouse or partner have enough money to cover your funeral costs, credit card balances, outstanding loans and daily living expenses?
Raising children is tremendously rewarding but can also be tremendously expensive. If you died tomorrow, would your spouse or partner be able to financially provide your children with the opportunities you had planned for them?
Would there be enough income to pay for school and college or university as well as all the living expenses along the way? Considering life insurance for a non-working spouse can be just as important as insuring the breadwinner of the family as they perform important functions that would be expensive to replace such as raising the children and running the household.
Single parents need to consider life insurance more than anyone else as their children are so critically dependant on them.
Servicing a mortgage
For most people, the family home is their most significant financial asset and their mortgage is their most significant liability.
If you have a mortgage, consider life insurance for the value of the mortgage to provide your family with the security of a fully paid home if the worst should happen.
Once your children are on their own and your mortgage is paid off, you may no longer need life insurance.
If you died today, your spouse could potentially outlive you by many years. Consider whether they would have to make drastic lifestyle adjustments to make ends meet and whether you have adequate life insurance cover in place to ensure they avoid financial struggles in retirement.
The governments of approximately 40 countries levy some form of death duty, estate duty or inheritance tax on the estate of a deceased citizen or tax-resident, which must be settled by that person’s beneficiaries. Life insurance is often the most cost-effective solution to help a family pay these taxes.
Consider whether your family is exposed to this potential liability and whether life insurance could be the solution to help them avoid having your estate broken up to pay the taxes due.
Individual Life Insurance Solutions
We offer a comprehensive range of benefits, protecting you and your family from unforeseen circumstances.
Key Person insurance can help a business protect itself from the sudden death of an important person who generates significant revenue because of their business relationships, or someone who is the intellectual capital of the business because of their knowledge, experience or skill set; or simply the costs incurred in recruiting and training someone to replace an important employee.
Shareholder Protection insurance could allow surviving shareholders to retain control of their former partner’s shares. Not having this protection in place could lead to family members becoming actively involved in a business when they have no knowledge or experience.
Business Loan insurance can help settle business loans which are linked to a shareholder or another key employee.
How much cover do you need?
The most important (and possibly difficult) part of buying life insurance cover is determining exactly how much cover you need.
As each person has different goals, financial and personal circumstances, there is no general standard for how much each person should buy. We suggest you consult with your financial adviser or insurance broker and review your personal and family circumstances described earlier.
Here are some points to consider as you go through this process.
Estimate, if you were to die today, what your family would need to meet immediate,
ongoing, and future financial obligations.
Immediate Cash Needs
Credit Card Debt
Ongoing Cash Needs
Future Cash Needs
Family Protection Calculation
Then consider what resources are already in place, such as your spouse’s income, savings, investments and life insurance you already have. The difference between these is your current life insurance gap.
Immediate, Ongoing and Future Cash Needs
Spouse’s income, savings, investments and existing life insurance
Life Insurance Gap
You may wish to make use of the Unisure Family Protection Calculator to help you work out your potential life insurance needs.
This calculation may seem simple enough but there are so many inputs and thinking of them all can become overwhelming. You’ll also need to consider the effects of inflation and make assumptions about what returns are likely on the invested lump sums.
A financial advisor or insurance broker can assist with some of these matters.
Guaranteed International Solutions
As a global insurance solution provider, Unisure specialises in developing and providing effective life insurance solutions for individuals around the world. Our guaranteed international solutions backed by our world class partners makes Unisure a leader in the international life insurance provider market.
Whether you are on assignment for a few years in a different country or if you are pursuing a long-term international career abroad, life insurance from your home country could become invalid if you move abroad.
If you are an expatriate, or an internationally mobile person, it is important to be sure your life insurance provider continues to cover you regardless of where you may live next. Cover on all our policies is guaranteed regardless of any changes to your country of residence, occupation or lifestyle.
All Unisure Individual policies are issued by Guardrisk Life International Limited. Guardrisk is a wholly-owned subsidiary of Momentum Metropolitan, which is listed on the Johannesburg Stock Exchange, has operations in 18 countries and employs 18,000 staff across Africa, Asia and Europe.
For more information on Guardrisk and Momentum Metropolitan, including their corporate profiles, annual financial reports and credit ratings, please refer to www.guardrisk.co.za and www.momentummetropolitan.co.za