WHO SHOULD TAKE OUT A TERM LIFE INSURANCE POLICY?
For families with children, single parents, borrowers and mortgagees, business start-ups, the self-employed or business partners, a term life insurance policy is indispensable. It offers spouses and life partners mutual security and is highly recommended.
HOW HIGH SHOULD THE SECURITY BE?
The amount of the sum insured is based on the financial needs of the surviving dependants to ensure adequate coverage. Financial obligations of the family, such as mortgages, education of the children, must be taken into account in the calculation. As a guideline, three to five times the gross annual income of the primary wage earner is assumed. When securing a real estate mortgage, the amount can be adjusted precisely to the obligation.