Why should you invest in a life insurance policy? For South Africans, the answer is simple: life is unpredictable and protecting your family’s financial future should absolutely be a top priority.
Let’s explore why life insurance matters, how it works and what benefits it provides.
Why do you need life cover in South Africa?
South Africa faces high levels of crime, road accidents and health risks, making life cover an essential safeguard. Life cover is an important part of having peace of mind. Imagine going about your day knowing that, no matter what happens, your family will be financially secure.
Without life cover, your family may face:
- Funeral costs ranging from R15 000 to R60 000 or more.
- Ongoing expenses such as school fees, groceries, housing costs and transport.
- The possibility of having to sell property or go into debt just to maintain their standard of living.
This is what life cover is all about. It removes the worry and replaces it with a solid plan. It’s as simple as that.
You can take life cover for you and your partner for the benefit of your children and extended family members who depend on you.
Who can take out life cover?
Hollard’s life insurance cover is available to South African citizens and permanent residents who are over the age of 18 and have a valid bank account.
It’s designed for individuals who want to secure financial stability for their partners, children, and extended family.
How does life insurance work?
Getting life cover is straightforward. Assess your needs and determine how much cover your family would require, and then choose your level of cover. Select a policy that balances affordability with protection.
Once you know what you need, apply and get covered. Once approved, you’ll enjoy peace of mind knowing your family is protected.
When you pass away, your beneficiaries will receive a tax-free lump sum payout that can be used for:
- Covering funeral costs.
- Paying off debts, loans, or medical bills.
- Maintaining the household’s daily expenses.
- Preserving assets such as property, without the need to sell.
The benefits of life cover in South Africa
The payout to your beneficiaries is tax-free, ensuring they receive the full benefit. It also helps relieve the burden of debt, covering outstanding loans and end-of-life expenses so your family isn’t left with financial strain.
Even a small policy is better than none at all. It can be one of the most meaningful gifts you leave behind, providing protection and care that will be deeply valued when it matters most.
Why choose Hollard life insurance?
At Hollard, we understand the realities South African families face. That’s why we offer affordable and flexible life insurance policies designed to protect your loved ones from financial hardship.
Get a Hollard life cover quote today and take the first step in protecting your family’s financial future.
FAQs about life cover in South Africa
Is life insurance mandatory in South Africa?
No, it’s not legally required, but it’s strongly recommended if you have financial dependents.
How much life cover do I need?
It depends on your lifestyle, debts and family responsibilities. A financial adviser can help you calculate the right amount.
Is the payout from life insurance taxable?
No, life insurance payouts are tax-free for beneficiaries.
Can I cover my partner under the same policy?
Yes, many life cover options allow joint policies for partners, ensuring both are protected.
Disclaimer
This article provides general information only and should not be considered financial advice. For tailored assistance, please consult a Hollard-accredited financial adviser or a licensed financial professional registered with the Financial Sector Conduct Authority (FSCA).
