Don’t have your Nedbank ID yet?
Nedbank ID single sign-on gives you full digital access to Nedbank’s banking and lifestyle products and services on the Money app or Online Banking.
Log in
Log in to Online Banking or another one of our secured services.
Bank how and when you choose to, with the low fees or extra benefits you want.
Shop online or instore and earn rewards for it, with up to 55 days interest-free credit.
Buy foreign banknotes, transfer funds or shop globally with a travel card.
Great interest rates, with great flexibility and access to your money when you need it.
Personalised interest rates for affordable loans from R2,000 to R300,000.
Loan up to 100% of the property value or up to 105% if you are a first-time home buyer.
Choose a plan for yourself, family or build your own cover to suit your needs.
Get cover for your car, building, house contents, valuables and more.
Cover your bond, credit card, overdraft, loan and car repayments.
Choose a plan for yourself, family or build your own cover to suit your needs.
Take the right steps to achieve your financial goals with expert financial planning.
Plan for everything you own and owe, so your estate is in order when you’re gone.
Accounts
-
Everyday banking Safety, convenience and rewards
-
Youth banking For under 16s, or under 25s
-
Accounts -
Digital wallet Your phone is your bank account
-
Private Wealth The globally integrated account
-
Goal saving Easy access to interest earned
Credit cards
Digital banking
Switch to Nedbank
Fraud awareness
Forex
Rewards
Accounts
-
On demand Money available at any time
-
In 24 hours Cash in your hand the next day
-
In 32 days Funds ready within a month
-
End of term Investments left until maturity
Investment services
Share trading
Personal loans
Home loans
Student loans
Overdrafts
Vehicle finance
Solar finance
Life cover
Funeral cover
Short term insurance
Credit Life
Travel insurance
Is your business covered?
Secure Investments
Financial planning
Estate, wills & trust services
Nedbank Private Wealth
Speak to a financial adviser
Blog
Talk to us
Find us
- Login & Register
- Online Banking
- Online Share Trading
- NetBank Business
- NedFleet
- Nedbank Greenbacks
- Nedgroup Investments
- Nedbank ID
- Bank
- Accounts
- Credit cards
- Digital banking
- Switch to Nedbank
- Fraud awareness
- Forex
- Rewards
- Explore Bank
- Accounts
- Everyday banking
- Youth banking
- Accounts
- Digital wallet
- Private Wealth
- Goal saving
- See all accounts
- Get help choosing
- Family Banking
- Refugees and asylum seekers
- FAQ
- How-to guides
- Everyday banking
- MiGoals Premium
- MiGoals Plus
- MiGoals
- Discontinued accounts
- Youth banking
- Nedbank4Me
- Digital wallet
- MobiMoney
- Private Wealth
- Private Wealth Bundle
- Goal saving
- MyPocket
- American Express
- Amex Gold
- Amex Platinum
- Digital banking
- Switch to Nedbank
- Fraud awareness
- Forex
- Send and receive
- Rewards
- Save & Invest
- Accounts
- Investment services
- Share trading
- Explore Save & Invest
- On demand
- Club
- Money Market
- Stokvel
- In 24 hours
- JustInvest
- PlatinumInvest
- Tax-free Savings
- MoneyTrader
- EasyAccess Fixed Deposit
- PrimeSelect
- In 32 days
- Electronic 32Day Notice
- 32Day Notice
- End of term
- Tax-free Fixed Deposit
- Electronic Fixed Deposit
- Electronic Optimum Plus
- Platinum Fixed Deposit
- Fixed Deposit
- OptimumPlus
- Investment services
- Share trading
- Borrow
- Personal loans
- Home loans
- Student loans
- Overdrafts
- Vehicle finance
- Solar finance
- Explore Borrow
- Personal loans
- Consolidation loan
- Secondhand car loan
- Home improvement loan
- Exclusive short-term loan offers
- Explore loans
- FAQ
- How to guides
- Consolidation loan
- Secondhand car loan
- Home improvement loan
- Exclusive short-term loan offers
- Home loans
- Building loan
- Switching home loan
- Repossessed properties
- Start your home buying journey
- Solar-energy Finance
- Earn R29,600 p/m or less? See offer
- HomeVision extra funds
- Home-buying Toolkit
- Managing your home loan
- Explore home loans
- FAQ
- How to guides
- Track application
- Building loan
- Switching home loan
- Repossessed properties
- Start your home buying journey
- Solar-energy Finance
- Earn R29,600 p/m or less? See offer
- HomeVision extra funds
- Home-buying Toolkit
- Managing your home loan
- Student loans
- Explore student loans
- Overdrafts
- Vehicle finance
- Solar finance
- Insure
- Life cover
- Funeral cover
- Short term insurance
- Credit Life
- Travel insurance
- Is your business covered?
- Secure Investments
- Explore Insure
- Life cover
- Get a call back
- Explore MyCover life
- Funeral cover
- Individual R10,000
- Individual R30,000
- Family Cover
- Build your own cover
- Get a call back
- Explore MyCover Funeral
- Individual R10,000
- Individual R30,000
- Family Cover
- Build your own cover
- Short term insurance
- Vehicle insurance
- Building insurance
- House contents insurance
- Valuables insurance
- Get a call back
- Explore MyCover short term insurance
- Vehicle insurance
- Building insurance
- House contents insurance
- Valuables insurance
- Credit Life
- Home loan credit life
- MFC Vehicle Finance Assurance
- Overdraft Assurance
- Balance Protection Plan
- Personal loan Assurance
- Get a call back
- Explore credit life
- Home loan credit life
- MFC Vehicle Finance Assurance
- Overdraft Assurance
- Balance Protection Plan
- Personal loan Assurance
- Travel insurance
- Is your business covered?
- Secure Investments
- Guaranteed Growth Plan
- Guaranteed Income Plan
- Get a call back
- Explore MyCover Funeral
- Guaranteed Growth Plan
- Guaranteed Income Plan
- Plan
- Financial planning
- Estate, wills & trust services
- Nedbank Private Wealth
- Speak to a financial adviser
- Explore Plan
- Financial planning
- Investment planning
- Insurance planning
- Give
- Retirement planning
- Investment planning
- Insurance planning
- Give
- Retirement planning
- Estate, wills & trust services
- Will drafting
- Ensure your estate is managed by an executor | Nedbank
- Trust services
- Financial accounting
- Tax services
- Leave the admin of your estate to us, and not to your loved ones | Nedbank
- Will drafting
- Ensure your estate is managed by an executor | Nedbank
- Trust services
- Financial accounting
- Tax services
- Leave the admin of your estate to us, and not to your loved ones | Nedbank
- Nedbank Private Wealth
- Speak to a financial adviser
- Learn
- Blog
- Explore Learn
- Blog
- Contact us
- Talk to us
- Find us
- Explore Contact us
- Talk to us
- Find us
6 reasons why life insurance is essential
6 reasons why life insurance is essential
Staff writer
Posted 02/11/2022 Updated 16/10/2023 5 mins
The right policy can protect you and your family financially when needed most.
It’s important to have a secure financial plan to ensure the well-being and stability of your family, even when you’re no longer there. Life insurance gives you the ability to look after your loved ones if something should happen to you.
No matter how well you’ve planned your future, death and disability have no respect for our calendars, life goals or vision boards. Tragedy can strike at any time, and you don’t want yourself or those you love to be stuck in a difficult financial situation.
Although the terms and technical details can make it intimidating to compare the products available, life cover is an important part of your insurance portfolio, so you should take the time to understand the different options available.
3 types of life insurance
There are 3 different types of life insurance. You can decide which one suits your needs best by weighing up the terms of each against your preferences, lifestyle and financial resources.
1. Whole-life insurance
Whole life insurance offers indefinite cover, meaning that it will cover the whole term of your life or until you decide to cancel your policy.
2. Loan protection insurance
Loan protection insurance covers a specific amount that decreases over time. For example, if you take out a personal loan, loan protection insurance will cover the outstanding balance of your loan should you pass away, become disabled or be diagnosed with a dread disease and no longer be able to pay your instalments. These policies normally pay your creditors directly. Or you can choose to take out life insurance that will pay out to your estate, which your executor will then use to pay off any debts before distributing the remaining money to your heirs.
3. Term insurance
Term insurance covers you for a specific period. With this kind of insurance, you will have cover from the start of the policy until the term ends. Once the policy reaches its end date, it will be terminated.
Why life insurance should be part of your budget
1. It protects those you leave behind
Life insurance is a way to ensure that your family is provided for when you are no longer around, which is especially important if you have children or other dependants. Proper life insurance can secure your loved ones’ financial needs, from day-to-day expenses to long-term investments, and will spare them added financial stress while they’re grieving.
2. It leaves a legacy for your heirs
Even if you have no other assets to pass on, life insurance can create an inheritance to leave to your family. When you take out life insurance, you can nominate beneficiaries and divide the money between them to ensure that all of them are financially more secure. You can also have the money paid into a trust to take care of your children’s education or leave the money to your nearest and dearest as capital to start a business to support the family.
3. It can help pay off debt
Your estate can use part of your life insurance cover to pay outstanding debts, whether they’re store accounts, personal loans and credit cards, or home loans and vehicle finance. This is especially helpful if you don’t have loan protection insurance. Being able to pay off the loan right away will allow your heirs to remain in possession of the home or car. If you don’t have a funeral plan, your family may need to borrow money to arrange your funeral. Although life insurance takes a little longer to pay out than funeral cover, your life insurance can still help your loved ones settle funeral debt faster.
4. You can make your retirement more comfortable
Term insurance generally has lower premiums than whole-life insurance, freeing up more money to invest towards your retirement. Some insurance policies also offer annual payouts, which you can add to your retirement investments.
5. It protects your business
Life insurance isn’t there only to protect your family. Policies like key-person insurance, for example, cover the life of anyone who’s essential to the running of your business. Should you die unexpectedly, your business partners can use this cover to buy out your shares at a predetermined price without any fuss so that the proceeds can be added to your estate and paid to your heirs.
6. You can get cover for disability and critical illness
Some life insurance offers cover for disability and critical illnesses, which means that should you become disabled or be diagnosed with a dread disease that leaves you unable to work, you’ll still receive an income. Be sure to discuss this with your financial advisor to ensure that your cover includes everything that you need.
If you’re ready to explore your life insurance options, contact us today for a quote.