A life insurance policy is there to make sure that a family has financial protection when the breadwinner passes away. When you take out a life cover policy, you pay a premium every month and, in the event of your death, 1Life Insurance pays your beneficiaries, for example your family or other dependants, a lump sum.
Your family can use your life insurance pay-out to survive the loss of your income and provide them with the financial protection they need to live the life you’ve always planned for them. A lump sum pay-out can be used to cover daily living expenses, medical bills and school fees, or to pay off debts, like your house or cars. Your family can also use your pay-out to start building generational wealth by saving and investing for their future and their children’s future.
Pure life cover is life insurance that pays out a lump sum in the event of the death of the life assured and does not have a savings account attached to the policy like the old-style universal lifestyle policies.
Anyone who has people who rely on them for financial support needs the protection and peace of mind of life insurance. If your income supports a spouse, children or extended family and elderly parents, and they would not be able to support themselves if you passed away, then you need a life cover policy. Your life insurance pay-out will make sure that your loved ones can meet their monthly living expenses, repay debt, pay off the bond on the family home or cover school fees and medical bills.
You might think life insurance cover is for older people, but even young, healthy people need life insurance if they have a spouse, partner, family or other people depending on them. You never know what the future holds, and if you were to pass away at a young age, your dependants would need education, food, medical care and shelter for many years. Remember that life insurance is cheaper when you are younger as you are less likely to have existing medical conditions, so the sooner you start the better.
You can work out how much life cover you need to take care of your family’s needs using our life insurance calculator.
There are a few key differences between life insurance and funeral insurance.
You take out life insurance on your own life, to secure the financial wellbeing of your loved ones in the event of your death. The life insurer issues a payment to your nominated beneficiary.
Life insurance can take longer to pay out than funeral cover because documentation needs to be collected from various sources in order to assess and validate a claim.
Funeral cover insures you and your immediate or extended family on the same policy and pays out when a death occurs and funeral and other services need to be arranged.
The life insurer issues a payment to you on the death of family members covered, or your nominated beneficiary on your death, which they can use to cover funeral expenses if they want.
Generational wealth is family assets like money or property that is passed from one generation to the next. Each generation not only benefits from generational wealth but also grows it and passes it on to the next generation.
Defining generational wealth is easy, building it requires planning and dedication! You should focus on saving and investing wisely, paying off the bond on a home that you can leave to your children, starting a side hustle to generate extra income for future generations and of course ensuring that you have sufficient life cover.
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