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In this section we help you understand what Life Insurance is, who may need Life Insurance, the benefits of Life Insurance and things to consider before you buy the Life Insurance policy for your individual needs.
To better understand what life insurance is, it is helpful to first understand insurance.
There are many misconceptions about insurance, and it is often not easy to understand the jargon – that’s one reason many people simply put it in the ‘too hard basket’. In a nutshell, insurance means that we pay a relatively small premium to have an insurer cover the risk of damage or loss for us – so in many cases – we or our family don’t end up losing our life savings or more if something were to happen.
Put simply, when a person takes out a Life Insurance policy, they pay a contribution (premium). The premiums of policyholders are ‘pooled’ along with the contributions of all other policyholders, making a ‘pot’ of money which policyholders claim from in the unfortunate event that they need to. The policyholder does not get the premiums back if they don’t make a claim.
Life Insurance helps cover the cost of unexpected, unfortunate events – serious illness or disability, and death. It can help protect the financial safety of you and your family.