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How long-term insurance helps you build generational wealth

22 September 2021
3 minute read

The funeral expenses your cousin had to cover when her father passed away, and the bills your sister had to pay for her cancer treatment used up their savings and increased their debt. Paying living expenses was a struggle and they could no longer save money every month. Don’t let this happen to your family! Long-term insurance products can help you to protect your wealth and build a lasting legacy of generational wealth for you and your family. Here’s how.

What are long-term insurance products and how do they work?

Life insurance
This pays a lump sum to your beneficiary or beneficiaries when you pass on. This payout can be used to make sure the family can meet their day-to-day living expenses on a reduced income, and even pay off all or some of family debt like a home loan to further reduce monthly expenses. They can also invest the payout so that they receive an income each month.  

Dread disease cover
This insures you against a serious illness such as cancer or heart disease. For example, if you are diagnosed with stage 3 cancer, your dread disease policy will pay you a portion of the sum assured. You can use the money to pay for medical expenses and care, as well as to support the family if you are unable to earn while undergoing treatment.

Disability insurance
This insures you against permanent disability, such as losing a limb or your eyesight. Disability policies pay the sum assured or a portion thereof to you. This money can be used for any additional expenses such as medical care or adapting your home or car, and to cover living expenses, as you may no longer be able to earn an income if you are permanently disabled.

Funeral cover
This pays a sum assured on the death of a member on a funeral policy, up to an amount of R50 000 on 1Life Funeral Cover. This payout will only cover funeral expenses and cannot be used to pay off debts, cover living expenses or pay school fees.  You can insure yourself and other family members, including aunts, uncles and grandparents, on a funeral policy. Funeral cover makes sure you can afford funerals and don’t have to go into debt to pay funeral costs for your family and extended family.

How do these products help me create generational wealth?

Long-term insurance policies protect you and your family from the financial hardship that can happen when an income earner dies or is unable to earn, or you have expensive medical bills to pay because of a serious illness or disability.

Having long-term insurance means that not only can you and your family continue paying daily expenses and school fees, it also means you can continue with wealth building activities such as paying a home loan, and saving and investing.

Insurance isn’t just about protection; it’s also an important part of your wealth building plans!

The 1Life Generational Wealth Plan

The 1Life Generational Wealth Plan is a personalised portfolio of long-term insurance products from 1Life, skilfully customised for you and your family’s needs and budget, and designed to help you create generational wealth for future generations.

Your plan is unique to you. For example, if you are in your late thirties with a spouse and children, you may need more life and dread disease cover than disability insurance. If you are young and single, you may need more disability insurance than life and dread disease cover.

1Life’s skilled advisers will work with you to develop your perfect plan, tailored to your circumstances and needs. They will also help you adapt your plan as your life changes, for example when you get married or have your first, second, or third child!

Build your generational wealth one step at a time

Generational wealth is built by taking one small step at a time. You can start creating generational wealth today. Contact one of our skilled advisers and they will help you build a Generational Wealth Plan that is perfect for you! This one small step will help you build a family legacy that will benefit future generations!

All product terms and conditions apply.

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