Most parents, regardless of their income bracket, work hard to provide for their children’s future.
A part of that is ensuring that their children has some form of savings when they come of age. In the extreme event of their untimely death, most parents would want to leave behind an inheritance for their child.
Wealth and savings
Some people acquire wealth through inheritance. Others gain wealth through earned income, profits or investments. Over time, they accumulate enough savings to the extent that they can safely pass down a sufficient amount to their children without affecting their current lifestyle.
Life insurance and inheritance
Not many people can afford to build an inheritance fund for their children, whilst maintaining their current lifestyle. Thankfully, there are other alternative ways to do that.
Life insurance is a contract between an insurer and a policyholder which guarantees that the sum assured will be paid to the policyholder during or after the term of the policy (depending on the policy) in exchange for premiums paid to the insurer. A person could in theory* pay SCR500 in premium every month for a life policy worth SCR150,000.
*In practice, there are many factors which determine the premium such as age, policy term, policy plan etc.
Importantly, life insurance guarantees that the beneficiary of the policyholder is paid the full sum assured in the event of the death of the policyholder.
The insurer, Sacos, is obligated to pay the full sum assured to the beneficiary even if the policyholder had only been paying the premium for a few years before their passing. That payout to the beneficiary becomes their inheritance.
If a policyholder has a life policy worth SCR250,000, that amount will be paid to the beneficiary when the policyholder passes away.
With other saving options, the beneficiary gets has been saved at the time of death. With life insurance, the beneficiary gets what the policyholder intended to save before their untimely passing.
Even if the policyholder survives the term of the plan, the payout received by the policyholder can be placed in a separate savings account as future inheritance to their children.
For more information on life insurance and to learn more about the current life insurance promotion which ends on 31 August, call us on 4295000 or send an email to life@sacos.sc. For a quote on our life insurance plans, you can submit your request via our website.
