Guest post by - OneSpark

Life insurance: it sounds about as exciting as watching paint dry, right? However, just like that fresh coat of paint protects your walls from wear and tear, life insurance is all about protecting your loved ones from the financial burdens that could pop up in your absence.

Now, the one thing that may be sucking that excitement out of life insurance is the perception of it being overwhelmingly complex and unjustifiably expensive. But it doesn’t have to be. So, we decided to put a few notes down to help you understand life insurance, and why it’s such an efficient way to enable tax-efficient wealth protection.

First, why on earth would you need life insurance?

Well, think about it this way: it's not just about supporting loved ones when you're no longer around. Life insurance is also about critical illness, disability, and income protection. So, whether you're young, and single, or you're climbing the corporate ladder, life insurance can be as crucial as your morning coffee. It protects you and replaces your income if you’re sick or injured, can help you pay off any debt when you’re no longer able to work, ensures you can access breakthrough treatment for that rare cancer, or simply makes sure your loved one’s have sufficient money and are taken care of when you’re no longer around. It’s like an invisible superhero, ready to swoop in and save the day when you can't be there or do it yourself.

Is it expensive?

Life insurance premiums are usually calculated based on a few factors like your age, health, and lifestyle. So, if you're young and healthy, and your idea of living on the edge is occasionally adding an extra shot of espresso to your morning latte, it could cost less per month than that latte. But even if you’re old, relative to other forms of insurance, life insurance is by far the cheapest.

On average, for every R1 in premium you could get over R10,000 in life insurance cover, compared to around R250 in car insurance cover for that same premium. In reality, life insurance can be surprisingly affordable, and provide an invaluable safety net for life’s unpredictable events.

What are the tax advantages of life insurance?

The growth of your policy is tax-free, and so are the payouts. Yup, no tax on any cover growth or claims paid. This means that if you take out R10 Million life cover, that R10 Million will be paid to your beneficiaries without having to worry about it being reduced by any taxes, like an investment product would. This makes it one of the most efficient ways to protect yourself and transfer wealth to your loved ones.

How do you choose the right product and company for you?  

With dozens of choices out there, the easiest way is to look for one that best meets your needs. This means one that can be personalized to your unique situation, is affordable, flexible, simple, but still comprehensive and powerful. That may sound like a mythical hidden treasure that does not exist, but over the last few years there have been some incredible developments in the life insurance industry.

Speaking of incredible developments and hidden treasures, you’ve probably never heard of OneSpark.

They’re revolutionizing the life insurance industry with their world-first AI-powered, pay-as-you-need products. It’s like having a personal 24/7 financial adviser on your side, calculating the precise amount of coverage you need but without pushy sales, endless forms, or painful medical tests. The process is so quick; you could get a quote during a commercial break of your favorite sitcom. Affordable, personalized, flexible, and easy – now isn't that refreshing?

In a nutshell, life insurance is not just a 'nice-to-have'; it's an 'essential-to-have' if your absence would leave a financial void. It's peace of mind in a policy, knowing you've done your part to protect those you care about.

So, put that coffee down, click on the link, and give OneSpark a try. You may be surprised at how simple getting life insurance can be.

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OneSpark is an authorised FSP 50594. Products are underwritten by Guardrisk Life Limited, an authorised financial services provider (FSP No 76) and a licensed life insurer. The content herein should not be regarded as financial advice. Premiums are risk profile dependant and not guaranteed. Comparisons were done against most major online insurers as on 10/01/2023. For more information, please visit www.onespark.co.za. Ts&Cs apply.