The love we leave behind

Life insurance can provide for your children's day-to-day needs while they are growing up

The post The love we leave behind appeared first on The Mail & Guardian.

“Mama, what happens when a person dies?” A really innocent but potentially unsettling question to get from a five-year-old little person, but also one that is “absolutely normal” for that age as part of a child’s developmental process, according to Dr Harvey Karp, one of America’s most trusted paediatricians, in his blog Happiest Baby.

He says, “Your young child lives in a magical world. Children think everything has a purpose and that adults have special powers. Even if kids have heard about death, they usually think it is something temporary and reversible.”

A natural response to a question about death to a five-year-old may go something like this: “When people die, they are transported to a place up in the sky where they live happily after.” But if your life partner was to ask you the same question, the response will need to address all the challenges and practicalities that death presents to your loved ones upon your death.

So, what really happens when a person dies? What happens to our loved ones and to their lifestyle? 

As someone who has loved ones who rely on you financially, their lifestyle could be compromised should you not have any provision in place to protect it. So, it goes without saying that any financial planning decisions that one is bound to make will certainly include loved ones. What about life insurance? Perhaps you have become accustomed to looking at it purely as a home loan application requirement. Does life insurance do a little more than that?

Having the bond and other debts settled is a sure win, but what else can life insurance do to help you support your loved ones when you are no longer around? While you may have savings and investments in place for your children’s education, life insurance can provide for their day-to-day needs while they are growing up.

“Old Mutual’s Life insurance pays a tax-free single amount starting from R100 000 or a monthly payment from R3 000 when you die,” Says John Kotze, Head of Retail Protection Product Marketing at Old Mutual. 

“Keep in mind that these are the minimum pay-out amounts — with the help of your financial adviser, you can work out what your family will need in order to sufficiently cover expenses such as estate duty tax, ongoing living expenses, and education costs — this will then help you determine the cover that you require. In all instances, we encourage customers to keep their affordability in mind.”

Financial provision for loved ones is indeed an act of love. And so is partnering with a company that has paid out over R5 billion to families left behind by their loved ones in 2022 (Old Mutual Claim Statistics 2023).

For more information, speak to your financial adviser or click here.

Old Mutual Life Assurance Company (SA) Limited is a licensed FSP and Life Insurer.

The post The love we leave behind appeared first on The Mail & Guardian.