Life Insurance

Adequate Life insurance or life assurance cover can protect your family financially when you are no longer around to do so yourself. A life insurance policy pays out a sum of money upon the death of the policy holder or insured person and can include additional cover for critical illnesses in case you’re diagnosed with a critical illness or if you become disabled.

Life insurance is a contract between the insured individual (the policy owner) and the life insurance company. The life insurance company agrees to pay a designated beneficiary a sum of money upon the death of the insured individual or other event such as terminal illness or critical illness.

In return, the policy owner agrees to pay a stipulated amount at regular intervals (insurance premiums) or in lump sums to the life insurer.

As with most insurance policies, life insurance is a contract between the insurer and the insured individual whereby a benefit is paid to the designated beneficiaries if an insured event occurs which is covered by the policy.

Life Insurance pay-out

In the event of the insured death or disability, a life insurance policy pays a lump sum to provide for your family or settle any debt (e.g. outstanding amount on your car or home).

Types of Life Insurance

Term Life Insurance or Credit Life Cover is ideal if you need life cover for a certain period of time, i.e. while paying a bond on your house, paying off a student loan or car. Term Life Insurance is relatively cheap, but does not have an investment/cash value. When the agreed cover period has passed, the cover expires.

Life Cover expires after the policy holder’s death or when the policy is surrendered. The premium is invested by the insurance company and you can be borrowed against as soon as the policy has a cash value.

A whole life insurance product offering by MiWay is currently under development.