Don’t lie!

(From previous page) entertainment budget, for instance, when they’re financially constrained.”

Karin Muller, CEO of Sanlam Risk, agrees. “Most South Africans don’t have enough insurance. Many take it out when they start working or buy a property but don’t re-evaluate their insurance when their circumstances change.”

Because life insurance can protect you and your loved ones from many risks, it can be regarded as an asset, just like your house, says Professor Nico Swart, a lecturer at Unisa’s School of Economic and Financial Sciences and author of Personal Financial Management.

For most people there aren’t alternatives to a life policy, he adds. “Only a life-insurance policy can give cover of millions of rands even after the payment of only one premium.”

Here’s what you need to know about life insurance as well as disability and dread disease cover. later in life might still need life insurance if they’ve left assets to relatives as there will probably be estate duty to be paid, Ingram says. “If they don’t want the family to be forced to sell property to pay estate duty they might want to keep their life cover just to do that.” and have children you might initially have a lot of debt but as you pay it off your need for cover will change.

When you’re older and your children have left home your debt will probably decrease, as will your need for cover.

Review your life insurance every three years, Ingram advises. If your health was relatively poor and you’ve become fitter and healthier you might find your life insurance becoming cheaper. So if you’ve quit smoking or lost excess weight, ask your insurer to review your cover. A lower risk category means a lower premium.