Life insurance: A beneficiary’s perspective 

We all want to ensure that our loved ones will be taken care of when we pass away

Many family lives are typically filled with beautiful milestones — like buying a new home, seeing children off on their first day of school, holidays and so much more. In between, there lies the dreams and hopes that parents have for themselves and their children.

And then, life happens. A life is lost.

According to the Old Mutual 2022 Claims Statistics Report, the top three causes of death claims for men aged 30-39 were trauma (e.g., motorcar accidents), suicide and cardiovascular disorders. For women in the same age group, the top three causes were trauma, respiratory system disorders, and suicide. This highlights how unpredictable life is and the importance of having adequate life insurance in place to provide for loved ones in the event of death.

Let’s talk through the benefits of life insurance from the perspective of those left behind.

Meet the Mthembu family:
Lindokuhle and Sanele Mthembu are both professionals in their 30s who have two young children. The couple lead a relatively healthy lifestyle, so when Lindo passes away in his sleep and an autopsy reveals that he suffered a heart attack, it comes as a shock to everyone.

A life-altering twist:
The sudden loss of Lindokuhle immediately thrusts Sanele into single parenting, and their household goes from having two incomes to having just one. This significant life change can also pose challenges to the emotional wellbeing of the family.

A beneficiary’s perspective:  

1. Time to Grieve and Adjust: The unexpected death of a healthy life partner is one of the most traumatic experiences to go through. Life insurance provides Sanele with the opportunity to take extended leave from work to focus on her grieving process while supporting her children during this difficult time.
   
2. Debt settlement and adjusting to a new normal: With life insurance, Sanele can settle any outstanding debts and make the necessary financial adjustments for herself and her children.
   
3. Maintaining a familiar lifestyle: The loss of a parent is a devastating change in a child’s life. According to a 2023 article by UNICEF, it is important to maintain normal routines and structure as much as possible following the death of a parent. Life insurance ensures that Sanele has the means to sustain the lifestyle to which her children are accustomed. 

John Kotze: Head of Product Marketing for Retail Protection Solutions at Old Mutual, says: “When we have loved ones who depend on us financially, we want to ensure that they will be taken care of when we pass away. Life insurance is a means of providing them with peace of mind, knowing that they will be financially taken care of even when we are no longer around.” 

For more information, please consult your financial adviser or visit https://www.oldmutual.co.za/life 

Old Mutual Life Assurance Company (SA) Limited is a licensed FSP and Life Insurer.

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