Who needs life assurance?
When talking about life assurance, people often ask, “Do I really need it?” or “What can it be used for?”
Life assurance has evolved significantly over time and is quite different from what it used to be ten or even five years ago. Providing different kinds of cover at different times and for different situations. As time passed, even the people needing life assurance have changed. For example:
Breadwinners: The breadwinner in a family or even a partial breadwinner needs to consider life assurance because other people depend on that income. In South Africa, women account for between 38% to 40% of primary household income. This income does not only provide for the needs of the person earning the salary but also for the needs of others, whether they are children, partners, parents, guardians or siblings.
Business owners: Businesses and their services contribute significantly to the economy. Formal small businesses employ 30% of the workforce in South Africa. Business owners must ensure that their business expenses are covered for when they are unable to work. Salaries are a big component of business expenses. When a business closes, this will immediately affect people who depend on the income generated through the business.
Singles with no children: An individual may be single now but may want to marry at some point and start a family. In South Africa, the average age to get married is between 33 and 37. Even if you don’t plan to ever get married, life insurance can help to protect your assets and provide for other dependants, like family, or a pledge to a supportive course. Getting life assurance while young and healthy is very important for a secure financial future.
Parents of a special needs child: How will a child with special needs be cared for and financially supported should their parent or guardian pass away, become permanently disabled or retire? Planning and securing adequate life assurance is essential to ensure the child’s ongoing needs are met when required.
Life assurance has evolved into different products that are designed for specific needs. Over the years, PPS has expanded its product offering and launched new products.
The PPS Professional Life Provider™ is designed to provide for members’ loved ones in the unfortunate event of death. The payout may cover outstanding debt, e.g., car or home loans, and provide for surviving dependants. The payout can be used to supplement income, cover living expenses or cover death taxes and ensure that the estate is liquid so that the executor does not need to sell assets bequeathed to others.
The PPS Professional Disability Provider™ is designed to pay out a tax-free lump sum. The benefit offers two options to cover disability-related conditions that impact a member's occupation (Occupational Disability Provider) and their ability to function (Functional Disability Provider). Should a member become occupationally disabled and be able to perform the functions of their work, the payment may be used to fund workplace adaptations (for example, workstation set-up changes), property adaptations (for example, modifying a vehicle or house) and/or assistive devices (for example, a wheelchair). If a member suffers a medical condition that affects their ability to function in daily life, the benefit payout will afford the member to make adjustments to their lifestyle (for example, assistive devices) and/or treatment. PPS Critical Illness Cover is designed so that the payout may be used to fund lifestyle changes, medical costs, special treatments, rehabilitation, assistive devices or property adaptations due to the condition suffered to ensure a member can remain independent.
The PPS Sickness and Permanent Incapacity benefit is designed to replace or supplement a graduate professional’s income when unable to practice their occupation. The PPS Sickness and Permanent Incapacity benefit is a monthly benefit that pays out should a member not be able to perform their usual professional duties due to a sickness or injury. The payment is based on the member’s monthly benefit amount.
PPS Education Cover is designed to help ensure that a member’s child’s education is taken care of should they pass away, become disabled or suffer a severe illness and pays for the child’s actual tuition fees and related costs. The payment is based on the actual tuition costs and fees. The benefit provides an annual lump sum to cover necessities, such as textbooks and stationery, school uniforms and residential fees during tertiary studies.
Why are all these products needed? They will provide a member with peace of mind, knowing that if something happens, there is a plan in place that can be actioned. Life assurance protects dreams. Dreams for the future as well as the future of loved ones. It also ensures that a member can live the life they want to live. Most people want to leave a legacy for their family. Life assurance makes sure that this happens.
At PPS, our members are part of a professional community. This professional community looks after one another. PPS supports, upholds and walks the road with members now and in the future.
https://www.heffins.com/news-events/blog/eight-types-people-who-need-life-insurance
By: Monique Drotsky – Technical Marketing Specialist
PPS is a licensed insurer conducting life insurance business, a licensed controlling company and an authorised FSP.
Business Brief Articles
https://www.pps.co.za/business-brief/who-needs-life-assurance