Life Insurance

This type of insurance is a lump sum that is paid out when you pass away. This amount can be used for anything, but usually covers any debts that you might have, so that you leave your family and loved ones with peace of mind, and to ensure that they can maintain their lifestyle after you are gone.

  • Traditional life insurance pays out as a lump sum, for example, an amount of R2 million. This can be used for many things: the money can settle your debt, it can pay your estate duty, or it can be bequeathed to a loved one. Many people do not have any money to leave their children, and these policies can be taken out as an inheritance to your spouse or kids.
  • Life insurance can also be paid out as an income, referred to as death income. This is especially helpful if you want to provide an income for your spouse or children instead of a lump sum, ensuring that they do not spend all the money and run out of cash. We often see that divorced parents use this. This provides money to an ex-spouse that is to be specifically used to care for the children each month, and not for any other purpose.