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Discover how life insurance can provide long-term security and peace of mind for your loved ones.
Imagine your child’s life ten or twenty years from now. You picture them leaving school, starting a career or perhaps buying their first home. Now, imagine that future if you were no longer there to provide for them tomorrow. It is a difficult thought, but for parents, planning for the unthinkable is the greatest act of love and legacy. At 1Life, our mission is to change our policyholder’s lives so their families can build and protect generational wealth. With a 1Life policy, a sudden loss doesn't mean a loss of opportunity for the next generation.
What is estate planning and why it matters for parents
Estate planning is the process of deciding exactly what happens to your assets and who looks after your children when you pass away. Many believe this is only for the wealthy, but for parents with young children, it is a necessity.
Modern estate planning also ensures your family has enough cash to survive while your estate is wound up and to pay the estate costs such as executor fees. Winding up your estate is a lengthy legal process. Without a plan, your assets could be frozen for months, leaving your partner or your children's guardians struggling to pay for day-to-day essentials.
The role of life cover in estate planning
Life cover is the most effective tool in a parent's financial toolkit. It provides a tax-free lump sum that can act as a bridge between your passing and the final settlement of your estate.
In estate planning, life insurance is typically used for:
- Paying off debts: Clearing the home loan on your family property so your children have a secure place to live.
- Providing for children: Ensuring funds are available for school fees, university, and medical care as well as daily living expenses such as food, clothing and transport.
- Covering final expenses: Taking care of immediate costs so your family can focus on a beautiful send-off without incurring financial strain.
- Paying estate costs: Paying estate costs such as executor fees, advertising expenses and taxes can reduce the inheritance you leave behind. Using part of your life cover pay-out to cover these costs can help preserve your assets, ensuring more can be passed on to future generations.
Top tip
Read this blog to find out more about how a life insurance policy can empower your family and secure their future and build generational wealth.
Common questions new parents ask
How much life cover do I need?
A good rule of thumb is to cover your total debt plus 10 to 12 times your annual income to ensure your children are provided for until they reach adulthood. You can also use our life insurance calculator to work out how much cover your family would need in the event of your death.
Will my family get the pay-out immediately?
Once a claim is successfully submitted and verified, 1Life aims to pay out as quickly as possible—typically within a few weeks—which is much faster than the months required to settle a deceased estate.
Can life insurance proceeds go directly to my children?
If your children are minors, the funds are usually paid into a trust or to their legal guardian. It is vital to set up a testamentary trust in your Will to manage these funds.
What happens if I don’t have a Will?
Your assets will be distributed according to the Intestate Succession Act and minors’ inheritances will be paid into the Guardian’s Fund, which may not match your wishes.
How 1Life can help you plan smarter
As a direct life insurer, 1Life makes pure life cover more affordable and accessible. We use innovation to remove the paperwork and long waiting times.
- Fast & Simple: Get a quote online in minutes without long-winded meetings.
- Online Tools: Use our calculators to find exactly how much cover you need.
- Expert Advice: Access clear, human-led guidance to help you navigate your family's financial future.
Get started today
Don’t leave your family’s future to chance. Protect the people who matter most. Get a life cover quote from 1Life today and save up to 13% when you buy online.
FAQs
What is the difference between life insurance and estate planning?
Estate planning is the overall strategy for your assets and legacy. Life insurance is a specific tool that can be used within that plan to provide the cash needed to support your family and pay for estate-related costs.
Why is life cover important in estate planning for parents?
It provides immediate liquidity, ensuring your children’s lifestyle and education are protected while your will is being processed by the legal system.
How does life cover help with estate taxes or debt?
The lump sum pay-out can be used to settle mortgage bonds or pay estate duty, preventing the executor from having to sell your family home to cover these costs.
Can life insurance proceeds go directly to my children?
Yes, but if they are under 18, the money can be managed by a guardian or a trust until they reach adulthood.
Will my life cover automatically be part of my estate?
If you nominate a specific person as a beneficiary, the pay-out goes directly to them. If you do not nominate a beneficiary, the money goes into your estate, where it may attract costs and taxes.
How much life cover do I need for estate planning?
Your cover should be enough to settle all your debts and provide an ongoing income for your dependants until they are financially independent.
What happens to my life insurance if I don't have a Will?
The insurance will still pay out to your nominated beneficiaries, but the rest of your assets (like your home or car) will be distributed according to South African law known as Intestate Succession, which can cause significant delays.