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Category Life Insurance

Being a dad means putting your family first

15 June 2022 Old Mutual

There’s nothing like becoming a dad. In a flash, your priorities change. The children come first, and if, as revealed in Stats SAs 2018 population survey, like 62% of men in South Africa, you are the family’s only breadwinner, you know that securing your family’s financial future is the best thing you could do for them. Why, then, don’t more dads buy life insurance to help secure that future?

The simple answer could lie in the many myths around life insurance, which causes hesitancy to make a decision. Before you know it, life moves on, dad forgets about life insurance and continues working so that he can provide his family with what they require today.

The question, says Thembisa Mapukata, General Manager: Tied Distribution, Old Mutual Mass and Foundation Cluster, is “Are dads who believe the myths surrounding life insurance acting in their family’s best interest?”

“The main myth about life insurance is that you don’t need it when you are young. So, if you become a dad when you are in your twenties, hearing that life insurance is best left until later when you are earning more probably makes sense. The problem is that life doesn’t always go according to plan.”

“What happens if you pass away suddenly? These events don’t respect age and your family could face life without a financial backup.”

Other common tales about life insurance are that:
• It is expensive. The truth is that the younger you are and the more we know of your health and lifestyle, the more affordable your premiums could be. It could be more affordable for a young healthy person to get life insurance.
• You won’t be offered life cover if you have a chronic illness such as diabetes or a heart condition. Not true! Old Mutual may request that you have a medical exam and truthfully answer some questions, but that doesn’t mean that your application will be rejected. The premiums could be higher, but your family will be protected.
• If your work benefits include life cover, you don’t need your own. Group life insurance is great, but it is unlikely that you will stay in the same job all your life. If you change employers, the insurance may expire and you lose cover. Also, think about a group policy as a ‘one size fits all’ cover. It doesn’t consider your specific personal needs as a dad and how much cover is required, which could be a problem later on. Taking out your own policy ensures that it suits you and provides the right and enough cover to suit your needs.
• I have a funeral policy; I don’t also need a life insurance policy. A funeral policy is designed to provide a lump-sum payout shortly after death for immediate funeral expenses, keeping in mind that this money will be spent on funeral costs such as undertaker fees, venue and tent hire, food and catering and the tombstone. A life insurance policy payout could be much larger than a funeral payout and can help the family long after the funeral – for instance helping to cover living expenses, education costs and paying off debts.

“As a father who is always striving to do the best for your family, take the time to learn about life insurance and demystify the myths out there. Act now – life can change in a heartbeat. Speak to a financial adviser to help you plan your financial future. A dad with a financial plan is a father who puts his family first,” concludes Mapukata.

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