Why do we need life insurance?

You don’t appreciate what you have. Until you don’t have it.

I didn’t appreciate my husband breathing beside me, even snoring, until he wasn’t there anymore.

I didn’t appreciate his presence, his time with Nicky, those Saturday morning breakfasts, the time we spent together – until we didn’t have it any more.

I didn’t appreciate how hard it would be to make big life decisions without a partner to make them with. Until he wasn’t there anymore to talk to.

I didn’t appreciate the little moments that made up fifteen years of marriage and a life that we created. Until it was all taken from me.

Losing a spouse is one of the most stressful things a person can go through. Emotionally and mentally, it’s one of the hardest things I’ve ever had to go through.

On a very practical side though, I didn’t appreciate his monthly salary which paid for our home and many other expenses every month. Until that, too, disappeared.

I’m incredibly grateful that I received some kind of death benefit. This has all been invested. Brett split the beneficiaries 80% for me and 20% for Nicky. So it’s sitting somewhere where it can grow.

My safety net has been my mother. Thank God for her. It’s also been my tenacity to start again and build up my online teaching business. That has taken a while though.

What if you don’t have a safety net? Then you need to start shopping around. You can look for term life insurance quotes or whole life insurance quotes. But you’d better start now. I’m living proof that it can happen to anyone.

So what’s the difference between term life insurance and whole life insurance?

Basically you can compare it to renting vs buying a house.

Term life insurance will cost you less. It’s great for when you’re starting a career, supporting a family and you don’t have savings. Only debt. It’s a temporary solution but if the proverbial sh1t hits the fan, you could at least cover your bond, have money for the kids education and a benefit for your spouse. There are other extras you can add, I’m sure. It’s for a limited time and it’s fixed, so you know exactly what you’ll be paying every month and for how long. This could definitely be an option if you only want that protection for your kids until they finish their education and become independent themselves.

Whole life insurance’s premium increases over time and it’s for your whole life. But at the end you will have a cash value that has accumulated. You can also access it after retirement. You can tap into it at other points in your life too. However, this will have an effect on your final payout. If you’re smart, you can use it as another kind of investment.

So which one is right for you? The answer is complex – but some kind of protection is better than no protection at all. You never know when you might need it. As a starting point you can use Hippo to compare quotes. I do recommend getting a broker because they often know what’s right for you and your situation.

When Brett had his stroke I decided to take out life insurance for myself. In many cases you would be able to do this over the phone or online. Because of my blood pressure I was referred to a broker who organised a medical for me. But I managed to pass that and was able to take out life insurance with Hollard.

Because of the situation I was in at the time I decided to go a bit crazy with the cover. Not only have I got R1m life cover but I also have critical illness cover, disability cover and a family funeral benefit. (There was nothing like seeing Brett in hospital completely immobile to know that these kinds of things can easily happen). I’ve chosen life cover with increasing premiums based on my age.

(I don’t think I’m going to die any time soon, by the way, but you just never know…)

The life insurance industry is here to stay and stable – even though the payouts have been increasing in these Covid times. According to Business Insider they have more than double the capital buffer required in place.

You can trust life insurance to pay out when you need it.

Until then – hold your loved ones close and appreciate them!

Because life is irreplaceable.

This post was sponsored by Responsival.