Business Advice: Don’t Cancel your Life Insurance

Lockdown has really damaged the economy and the Hair and Beauty industry has been feeling the pinch. Or should we say the PUNCH. Times are tough. The pandemic has affected the income of millions of South Africans. But as people scramble to find ways to reduce their monthly expenses, there’s one monthly expense which should always be on the list: your life insurance.

Not having any life insurance or cancelling what you currently have will not only remove the benefits it offers and leave your loved ones at risk, but it could be harder to get life cover as time goes on.

Remember, depending on the cover you have, Insurance policies don’t only pay out on your death. If you become ill or injured permanently or temporarily your income could be protected and there are also options for severe and critical illness payouts. Policies differ and so do the offerings from Insurance companies.

You take out insurance for one main reason: to protect income so that your family’s financial future is secure if anything happens to you, and to allow them to keep paying for things like education, the home loan and day-to-day expenses. If you don’t have a policy or cancelled a policy, that income protection goes away, leaving your loved ones at risk should anything happen to you.

If your income falls away, would it create financial stress to your family? If the answer is yes, you should do whatever you can to get cover or hold on to your current life insurance.

If you are over 55 or have pre-existing conditions such as diabetes, heart conditions, pre-cancerous illnesses etc., holding onto your current policy is a very good idea because getting exclusions on a new policy is a huge risk. If you have something simple like high blood pressure or arthritis or any other low risk illness that you have recovered from or being treated for, in that instance a brand new policy at a low monthly premium with low premium increases per year is a good decision. You could speak to your own Financial Advisor about both options or contact me and I will be happy to advise you further.

Candice Daniels Cell: 082 962 2999 Email: candiced@brightrock.co.za