It does not matter if you are a landowner with a wide range of assets or someone who works in a clerical position with no immediate plans for advancement. The fact is that you need some form of life cover right now. The trick is to identify the how much and what kind of life insurance will fit your individual needs. Here are some tips that will help with the process.

The Overall Amount of Cover

Many people find that it pays to secure more than one type of life insurance as part of their overall plan for financial stability. With this strategy, you would identify specific needs and then purchase plans that would meet those needs. Depending on the collective premiums paid on those plans, this can often be a great way to ensure that funds are designate for specific purposes.

For example, you may choose to secure what is known as fixed term insurance. This basic approach to life cover provides protection for a pre-determined period of time, such as twenty years. The premium cost is very reasonable, and the policy will pay out quickly in the event of your demise at any time during that covered term. When the goal is to ensure the family has funds to settle your end of life expenses, this plan makes a lot of sense.

Whole life insurance is another option. With this plan, you will pay into the policy until you reach a certain age. At that point, you are fully vested in the plan, and the amount will be paid to a beneficiary when you die. Unlike fixed term plans, whole life does not expire. Like fixed term life cover, whole life plans in South Africa do not usually build cash value, and is considered another form of no-profit insurance.

For people who do want to build cash value and have the benefits of a whole life plan, there is the option of going with universal life insurance. This form of life cover uses part of the premiums to purchase investments that build the value of the cover over time. When you reach the desired amount, then it is often possible to stop paying premiums. The balance in the investment account protects the value of the policy and ensures beneficiaries will receive the funds that you wanted to leave behind.

Finding the Right Combination

Life insurance is essential for taking care of loved ones when you are gone. It also helps to ensure that you do not leave behind a number of debts that someone must settle. Consider your own circumstances and purchase a combination of plans accordingly. Doing so will provide you with the knowledge that when your time comes, those who mean the most to you will have the resources they need to carry on.