There are various situations when having a life insurance policy is necessary. Life insurance is a way to ensure, while you are alive, that your loved ones are not faced with financial problems once you are gone. It is a safeguard for the loss of your income to the family budget. The idea is to ease at least the monetary burden on your family in their time of grief.
Life insurance is an arrangement between you and your insurance company that if anything happens to you, they will pay your beneficiary a certain sum of money. This payment is made on the basis of the plan you have purchased from them and the amount of premiums you pay to them on a timed basis.
What is Keyman Life Insurance?
Keyman life insurance is a type of life insurance. It is taken out by a company to safeguard its interest in case of death, disability or critical illness of an employee whose contribution to the company is important. This policy is generally a term policy. The company can suffer major losses if the key personnel in its employ are unable to work. Through this insurance the company is assured of financial protection against loss.
Of the various types of insurance policies that a person can buy in South Africa, the most important is life insurance simply because of what it protects. Insurance companies in South Africa number in the hundreds. In fact, there are always new insurance companies sprouting up every day in the nation.
One of the most important things you could do for your loved ones is to ensure that they remain financially secure. If your family is dependent on your income, that makes your responsibilities even greater. You now need to ensure that they have financial security even when you are not there to earn.