Buy online
Starting a family is a major milestone that shifts your perspective on everything including your finances. Suddenly, you’re no longer just planning for yourself, but also for your children’s long-term education costs, and ensuring a stable home for your dependents.
Because life is unpredictable, your financial protection shouldn't be set in stone. Adjustable life insurance policies allow parents to update their cover as their world expands, ensuring that their safety net remains strong enough to catch their growing family.
Top tip:
With 1Life Pure Life Cover, not only is your cover amount adjustable, but thanks to the Guaranteed Assurability Benefit, you can increase your life cover by 25% on every third policy anniversary without any further medical underwriting. The only requirement is that the life assured provides a new negative HIV test. Ts&Cs apply.
Why life cover needs to change when your family grows
As your family grows, your financial footprint grows with it. Life insurance that was sufficient when you were a dual-income couple without children may no longer be enough once you hit these milestones:
- Birth or adoption: Every new child adds approximately 18 to 21 years of financial dependency.
- Buying a home: Increasing your debt through a mortgage may require more cover to ensure the bond can be settled.
- Income changes: If you receive a promotion and/or salary increase, your cover should reflect the higher income that needs to be replaced.
- Education planning: The cost of schooling and university increases annually; your policy needs to keep pace with inflation and rising fees.
What are adjustable life insurance policies?
In simple terms, adjustable life insurance policies are flexible. Unlike rigid plans, an adjustable life insurance policy allows you to:
- Increase or decrease cover: Scale your protection when you have a new baby and down once your children are independent.
- Adjust premiums by changing your cover and/or benefits: Modify what you pay to suit your current household budget.
- Adapt to change: Update your policy to reflect your current life stage without starting a new application from scratch.
Key features of adjustable life insurance policies parents should know
When looking for the right protection, understanding the features of adjustable life insurance helps you choose a policy that lasts:
- Flexible Coverage: You can increase your sum assured when your responsibilities grow, such as after a salary hike or a new arrival.
- Premium Adjustments: The ability to modify your monthly payments by changing your policy if your financial situation changes.
- Policy Updates: You can adjust the terms as your circumstances evolve, such as adding a new beneficiary.
- Long-Term Protection: This ensures your cover remains relevant and effective as your children grow from toddlers to young adults.
When should you adjust your life cover?
You don't need to check your policy every month, but you should review your life insurance to make sure you have enough cover every 1–2 years or whenever these events occur:
- A child is born or adopted.
- You get married or divorced
- You take out a new home loan or increase an existing one.
- Your household income changes significantly.
- You or your partner stops working to become a full-time parent.
- You or your partner start a business or become a partner in a business
How much life cover should parents have?
The goal is to protect your family’s lifestyle and stability. When calculating your needs, consider:
- Housing: The outstanding balance on your mortgage.
- Education: The total cost of primary, secondary and tertiary schooling for all children.
- Daily Expenses: Groceries, utilities, and transport.
- Debt: Credit cards, car loans and personal loans.
Top tip
Use 1Life’s life insurance calculator to work out how much life cover you need as well as how much cover you could qualify for.
Tips for reviewing your life insurance policy
Set a recurring date, like a child’s birthday, to check your documents. Ensure your pay-out will still have the same "buying power" in ten years.
Don’t just look at today's bills; think about future university tuition. A professional can help you navigate the maths of pure life cover.
How 1Life helps South African families stay protected
At 1Life, we believe in helping families build generational wealth through simple, affordable and flexible policies. Our application process is designed for busy parents, whether you prefer buying online, speaking to a skilled consultant at our call centre or working with a qualified financial adviser.
Top tip
Buying 1Life life cover online is not only quick and easy, but you could save up to 8% on your monthly premiums.
Conclusion
Life insurance isn’t a "one-and-done" decision. It is a living part of your financial plan. Adjusting your life cover as your family grows ensures that no matter what the future holds, your children and partner will always have the financial security they deserve.
Review your policy today to ensure your family is fully protected. Get a life insurance quote in minutes and save up to 8% when you buy online.
FAQs
When should I adjust my life insurance policy?
You should review and adjust your policy after any major life event, such as a birth, marriage, or buying a new home, or at least every two years.
What is an adjustable policy?
Adjustable policies allow you to change the coverage amount and premium payments to match your current life stage.
Why do new parents need life insurance?
To ensure that if the primary earner passes away, there is enough money to pay off debts, cover living expenses and fund the children's education.
How much life cover should parents have?
Ideally, enough to settle all debt and provide for your family’s monthly needs. Use our calculator to work out how much you need to provide for your family when you pass.
Can I increase my life cover after having a child?
Yes, adjustable life insurance policies specifically allow you to increase your coverage to account for the new financial responsibility. When your life changes, you should speak to your insurer and adjust your cover as needed.
What are the features of adjustable life insurance policies ?
Common features include the ability to increase/decrease the sum assured, flexible premium options and the option to add or change beneficiaries easily.