Life insurance is the love we leave behind for our families

“Mama, what happens when a person dies?” 

It's a really innocent, but potentially “unsettling” question to get from a five-year-old little person. It's also one that is “absolutely normal” for that age as part of a child’s developmental process, according to Dr Harvey Karp, one of the US’s most trusted paediatricians, in his blog, Happiest Baby.

Karp says: “Your young child lives in a magical world. Children think everything has a purpose and that adults have special powers. Even if kids have heard about death, they usually think it is something temporary and reversible.”

A natural response to a question about death to a five-year-old may go something like: “When people die, they are transported to a place up in sky where they live happily after.”

But if your life partner was to ask you the same question, your response would need to address all the challenges your death would present to your loved ones and, ideally, the practical solutions that you've put in place to help them overcome these hurdles.

So, what really happens when a person dies? What happens to our loved ones and to their lifestyle? 

As someone who has loved ones who rely on you financially, their lifestyle could be compromised should you not have any provision in place to protect it. So, it goes without saying that any financial planning decisions you make will certainly include your loved ones.

What about life insurance? Perhaps you have become accustomed to looking at it purely as a home loan application requirement. Does life insurance do a little more than that?

Having the bond and other debts settled is a sure win once you are no longer around, but what else can life insurance do to help you support your loved ones when you are no longer around? While you may have savings and investments in place for your children’s education, life insurance can provide for their day-to-day needs while they are growing up.

“Old Mutual's Life insurance pays a tax-free single amount starting from R100,000 or a monthly payment from R3,000 when you die,” says John Kotze, head of product marketing for retail protection solutions at Old Mutual.

“Keep in mind that these are the minimum payout amounts, with the help of your financial adviser, you can work out what your family will need to sufficiently cover expenses such as estate duty tax, ongoing living expenses and education costs — this will then help you determine the cover that you require. In all instances, we encourage customers to keep their affordability in mind.”

Financial provision for loved ones is indeed an act of love. And so is partnering with a company such as Old Mutual, which paid out more than R5bn to families left behind by their loved ones in 2022^*.

For more information about life insurance, speak to your financial adviser or visit the Old Mutual website. 

Investing in tomorrow, today

Empower yourself to take the first steps towards securing a brighter financial future: visit the Old Mutual “Investing in tomorrow, today” hub to read insightful articles filled with practical tips about everything from saving for retirement to funding your child’s education.

This article was sponsored by Old Mutual.

_{*Old Mutual Claim Statistics 2023.
Old Mutual Life Assurance Company (SA) Ltd is a licensed FSP and life insurer.}