Take stock of your Life Cover at the Midway Point

The end of June brings us to the halfway point of the year (Already! Can you believe it?). This is the perfect time to take a step back, review the year so far, and take stock of the goals set out on your New Year's resolutions (which likely didn’t last past January).

It is a particularly good opportunity for you to do some hard thinking over your current financial situation and take action to get back on track... if necessary.

One area of possible improvement is on your life cover. We typically think of life insurance as something that you only need to buy once, and then we are simply covered sufficiently and therefore just forget about it. However, nothing could be further from the truth. While life insurance is not something you will need to reconsider weekly or even monthly, reviewing your cover halfway through the year can ensure that you are still getting the best coverage for your money.

For example, did you know that BrightRock has unique features incorporated into their standard policies at no extra cost? The features will enable you to change your policy as your needs change throughout the year. Here are a few things that you can mull over at the mid-way point of the year to help you make the most of your life cover.

1. If you qualify for BrightRock’s cover conversion facility, you will have the flexibility to redirect your premium from cover that you no longer need to other benefits or financial needs after you have had cover for three years or more.

For example, a portion of your premium was directed at paying off debt. Once you have paid the debt, you will be able to redirect that premium toward life, dreaded disease, or disability cover. This conversion is free of medical underwriting (to a maximum of R10 million). It is important to note that claiming from your life insurance policy could affect what cover you could purchase with the redirected premium. That being said, even if you have claimed from your life policy, you can always use death cover premiums to buy more death cover.

2. If you qualify for BrightRock’s extra cover buy-up facility, you will have the option to purchase more cover with no medical underwriting to suit your changing needs. Like the cover conversion facility, the lack of medical underwriting that makes this feature so appealing only applies to a maximum of R10 million, and it depends on the cover you already have. The options of what cover you can buy can also be affected if you’ve previously claimed from your life insurance.

3. Lastly, if you qualify for BrightRock’s yearly secured cover facility, each year you will have the option to purchase cover to the value of the amount the cover decreases per year if you took a policy out until retirement age (65 years). This can all be done without underwriting.

Without looking back and reflecting on the past six months, it is hard to gauge where you’ve been, how far you’ve come, and what you can improve. After all, it’s all about personal growth, is it not?

There are heaps of ways in which PBA can help you welcome the second half of 2021. Contact a PBA financial advisor to find out more about BrightRock’s unique features and if you qualify for them.

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