The 4 main types of Life Insurance are term, whole life, universal, and endowment.

Term Life Insurance covers you for a set period. Whole Life Insurance covers you for life. Universal Life Insurance offers flexible premiums and an adjustable cover amount. Endowment policies combine life cover with a savings element that pays out at a specified date. In South Africa, term and whole life are the most widely available Life Insurance options.

You choose a cover amount and a Life Insurance premium that fits your budget. Your insurer assesses your application, sometimes with a medical test, sometimes without, and, once accepted, your cover begins. When you pass away, your nominated beneficiaries submit a claim and receive the lump sum payout.

Your Life Insurance amount will be determined based on factors such as your annual income, age, and the number of dependents you have.

When a policyholder passes away, beneficiaries need to submit a claim to the insurer. The claims process typically involves providing details such as a death certificate, policy number, and proof of identity.

Once the insurer receives all necessary documentation, most insurers strive to finalise claims within a specified number of business days. The insurer will provide details of the review process if they dispute a claim. To ensure your claims are handled smoothly, keep your policy details up to date and make sure your beneficiaries know how to contact your insurer.