WHY WE ALL NEED LIFE INSURANCE
Botswana
The topic of life insurance is one that is not new to many people. Whether we have lost a loved one in the past or have experienced any form of severe illness, the discussion of life insurance is one many have had to face in their adult life. However, do you really understand what life insurance is and what it can do for you and your family? It is important that we continue to have conversations with our family and loved ones about what may happen in the event that one is no longer able to provide for them.
Firstly, in simple terms, life insurance is financial cover that pays out a sum of money to beneficiaries in the event of a policyholder’s death. This is ensured through the monthly payment of premiums by the policyholder before the event of their death. There are many reasons why life insurance is important, however, its main purpose is to safeguard their financial security in the event of one’s death. This may not be pleasant to speak about with our families and loved ones, however it is one of the most important conversations you can have within your lifetime.
However, this does not mean that a person may only begin enquiring about life insurance after a certain age. Life insurance is important at all stages of life, and the younger a person begins enquiring on and investing in life cover, the more beneficial and cost- effective it would be for them and their loved ones in the long- term. Life insurance is often more affordable the younger you are and can assist you as you begin to acquire assets. Therefore, young people, over the age of 18, especially should take advantage of the lower premiums that are often afforded to them.
Although at any age and at different stages of your financial journey, it cannot be stressed enough that it is essential for every individual to consider taking out a life insurance policy. With the assistance of a qualified and verified Financial Advisor this decision is likely to have a great impact on you and your family.
Most people remain sceptical about taking life cover, due to the misconception that it is only for the elite. However, once a person begins to explore their options, they soon find out that there are many policies and premium options that are affordable for everyone. The needs of every individual are different and these affect the questions you will need to answer when poised by your Financial Advisor. For instance, the current number of dependants you have, assets, plans for marriage, any changes to your lifestyle and your line of work all affect your premiums and the policy you may need to take out. Therefore, it is best to be as detailed as possible about your needs, plans and goals when having a discussion with a Financial Advisor.
As the policyholder of your life insurance policy, you are in control of all your choices. It is therefore important to note that neither beneficiaries nor life insurance policies can be changed without your consent. It is imperative to choose the right life insurance for your budget and your needs. Over the years, your needs, your family situation and your life goals will evolve. When that happens, it will be time for you to re- evaluate the right type of insurance for you to ensure you are adequately covered..
The greatest risk of not taking out this form of insurance cover is the financial security of your family and loved ones. The education fees, mortgage payments, monthly grocery bills – all these need to be provided for. These can be a great burden on your family should you not be there to assist. A life insurance policy is an excellent way to provide financial safety to secure your family’s lifestyle and future aspirations.
There are indeed many risks that come with opting out of having a life insurance policy, therefore it is important that we all take the time to explore the options that are available to us. Under the current economic climate and the effects of the pandemic, life insurance is not a luxury but rather a great necessity. It is therefore advisable to start planning for your future today while asking yourself, “Di salela mang?”