Many people seem to think that taking out life cover or funeral insurance for your spouse is a sinister move, but in actual fact, it’s much better than exposing your family to unnecessary financial risk.
According to Lee Bromfield, CEO of FNB, couples should treat life or funeral insurances as part of their day-to-day financial planning. “It is all about ensuring financial stability – there should be no secrecy or mystery around such decisions. Instead, spouses need to make such decisions together to ensure they are adequately insured.” If you are still in doubt about securing your family’s future by insuring each other, consider the following:
A lot of people don’t have tens of thousands of Rands to cover costly responsibilities such as paying for a funeral or running a household on one income should a spouse be deceased. In such situations, life or funeral insurance can provide relative financial relief or security.
Why Risk Losing Family Stability?
In most relationships, each spouse has financial responsibilities that are crucial to maintaining a stable family environment. Whether it’s paying school fees, buying groceries or paying a bond, the contributions are vital and any negative financial impact could significantly destabilise the family.
You Are Planning Ahead
Loss of life is an inevitable part of our existence, so if you know it is going to happen, there is really no reason why you shouldn’t plan for it to minimise its impact on you and your loved ones.
Avoid Getting Into Bad Debt
The cost of living is already high, and it’s only going to get higher, so a spouse’s income could be the difference between a debt-free, happy family and an unhappy, heavily indebted family. Even though not all debt is bad, you shouldn’t rely on debt to cover day-to-day expenses.
Rather Be Safe Than Sorry
It is your duty to ensure that your family is taken care of beyond your existence. Taking out life or funeral insurance can be crucial in ensuring this, depending on the lifestyle and value of your insurance.
Whether you are single or have a spouse, there are always important financial decisions to make so take a moment, review your life, and safeguard your family’s future by making the right decision.
SOURCE: FNB. IMAGE: ISTOCK