Life cover for parents is an insurance product aimed at securing your family financially when your parents pass away. Getting it for your parents will help you meet funeral expenses when they pass on or any financial obligations your parents had. Some of these obligations include paying school fees for your siblings and settling pending debts.
Conditions for Getting Life Cover for Parents in South Africa
Like most financial products, you must meet minimum conditions to get life cover for parents. In most cases, these conditions are unique to insurance companies offering the policy. However, there are general requirements that appear across the board. They include:
- Making your intentions known to your parents. It is not only fair to notify your parents, but it is also important to get their views on your intentions.
- You must demonstrate insurable interest to your insurance policy provider. Insurable interest simply means that you will incur a financial loss in the event of your parent’s demise. Therefore, to show insurable interest, you must prove you’ll take over financial obligations you can’t afford.
Type of Life Insurance Cover to Get for Your Parents
The market is awash with different types of life covers for parents. All these covers are great. However, going for the Whole Life Insurance policy will prove wise. This type of insurance is comprehensive as it provides an assured payout to cover your parent’s entire life.
Additionally, it helps to compare quotes online to find a cover that adequately matches your parent’s and family’s needs. Finally, if your parents already have a life cover, you can take over the payment of premiums.
How do You Take Life Cover for Your Parents
When taking life insurance for another person, there are three parties involved. These are:
- Policy Owner – essentially, a policy owner is someone (you in this case) who assumes ownership of the policy, pays premiums, and ensures everything is up-to-date.
- Life Assured – this is the person (your parents in this case) whose life is insured. In case of their demise, the policy is liable to pay for a valid claim.
- Beneficiary – a beneficiary is the recipient of payment from the policy. When getting the policy, the policy owner decides who the beneficiary or beneficiaries will be.
When you take life insurance for your parents, you become the policy owner, and they (your parents) become the life assured. The life assured will undergo medical tests and answer necessary underwriting questions. On the other hand, you will have to prove insurable interest to qualify for a policy.
It is important to note that most insurance companies have an age condition for the life assured. Therefore, you must conduct extensive research on the life cover products available before settling on one. In addition, the policyholder (you) and life assured (your parents) have to follow all the terms and conditions set by the insurance provider for a claim to be paid in the event of death.
Providers of Life Cover for Parents in South Africa
Whether you are looking for a life insurance policy for parents over 70 or life insurance for parents over 60 in South Africa, there is always an insurance company with a product suited to your needs. This list seeks to enlighten you on some companies that provide value.
Old Mutual Life Cover for Parents
It’s typical to think of Old Mutual when looking for the best life cover for parents in South Africa. This company has a line of life, and funeral covers for parents tailored to meet the needs of different categories of clients. These products include:
- Old Mutual Protect Life Cover
- Old Mutual Protect Accidental Death Cover
- Old Mutual Life Plan Range
- Old Mutual Life Insurance
The Old Mutual life cover for parents will ensure your family is well taken care of, debts are settled, and your parents receive a dignified send-off. You can get a cover amount from as little as R100,000.
Capitec Life Cover for Parents
Capitec life or funeral cover has a unique touch to it. It allows you to get a cover for yourself, up to R100,000 and allows you to add covers for a maximum of 21 family members. This allows you to only pay for one cover. In addition, the Capitec life cover plans are available for as little as R25.
Some of the benefits you’ll enjoy when you get this cover include:
- Receiving double benefits when life assured passes away due to an accident. However, the maximum payout for children is limited to the highest acceptable amount by law.
- You can pause your plan voluntarily for a maximum of 6 months without paying premiums and without a cover.
- Newborn premium waiver, death premium waiver, and waiting period waiver
- Transportation of life-assured remains from Mozambique, South Africa, Zimbabwe, Namibia, Botswana, Lesotho, and Swaziland to a preferred funeral home close to the deceased’s final resting place.
Hollard Life Cover for Parents
Hollard offers a variety of life cover plans for parents. These products include Life select, Life cover, and Specialist life. Each of these covers is uniquely tailored to meet the needs of different client types, from people living with disability to people seeking to protect themselves from financial burdens when the life assured passes away.
Standard Bank Life Cover for Parents
Standard bank seeks to offer life cover for parents to people who:
- Are after convenience
- Need a quick turnaround time
- Do not want full medical during the underwriting process.
- Want a flexible cover
This product allows you to apply for the amount you will or might need in case of a loss of life. However, you will be required to pay monthly premiums whose exact cost will depend on your risk profile, among other factors.
To sum it up, the importance of life cover for parents is apparent. It provides much-needed financial support at the most difficult time of an individual’s or family’s life. Getting it from a reliable and trusted insurance provider makes it even better. Hopefully, the information in this article will make it easy for you to find a good life cover for your parents.
Disclaimer: Information provided in this article is for informational purposes and should not be used as a substitute for professional advice. You are responsible for any action taken because of reading this article.