Life Insurance provides instant protection
By Ian van der Walt
Channel Head: Advisory at FNB Namibia
Life insurance is not an impartial decision and should be viewed as a selfless act that protects the future of your family.
Life insurance usually only gets the necessary attention when people are faced with a big new development in their life, such as buying a house, getting married or having children. It is not something we tend to think about in our daily lives, but it should become important for building a sound financial plan, and should not be ignored.
Tips for Namibians regarding the topic of life insurance, especially when and how it should be viewed as a necessity:
Buying a new house: when taking out a home loan your financial institution may require you to have life insurance in place to cover the debt if you pass away. Depending on the loan amount a portion of your life cover will be ceded against the home loan, leaving your dependants underinsured and out of pocket.
Children: one of the common reasons why people take out life insurance is to protect the financial future of their children. When you have a new child or the number of your dependants increase, it is important to ensure that your life insurance is adjusted to accommodate the changes.
Getting a higher paying job: if your financial situation improves, you should update your life cover amount accordingly to ensure your dependants maintain the same lifestyle if you pass away. For example, you could have moved into an affluent suburb and decided to take your children to a private school.
Marriage: getting married and starting a family is a commitment that comes with several financial responsibilities. Updating your policy cover and including your partner as a beneficiary becomes essential, especially when you are married in community of property.
There are numerous options and payment can be fit to suit your budget. We assist customers in taking a look at their finances thereby ensuring that they and their family are well looked after – and covered for any eventualities.