WHY IS LIFE INSURANCE COVER AND A LIFE FILE NECESSARY?
Cheap life insurance cover and having all your personal documents in order is really important for all South Africans. Consider the following scenario, which unfortunately can happen to anyone of us. “Oh dear, what am I going to do? My husband was passed away unexpectedly in a car crash. I have no idea of his finances, his papers, his passwords, last will and testament, and even whether he has life insurance to look after us financially now that he’s gone!”
Naturally, nobody wants to find themselves in this position! So the million dollar question is: “What now?”
The Smith Elite Funeral Group, for instance, provides what they call a ‘life file’, which contains all the vital documents that your family requires after you pass away.
It is important for a husband and wife to make sure their children/ family members know the exact location of their life file and its contents before they pass away. Imagine how much less traumatic it would be for your loved ones if, upon your death, they were able to easily locate your life file with all the right documentation inside? No hassle, no uncertainty and no hunting for critical documentation. This is really the least we can do for those we leave behind.
Let us look at some of the papers and documents that are essential when a loved one passes away unexpectedly. I’m convinced that many of you might be shocked by this.
DO YOU HAVE CHEAP LIFE INSURANCE COVER IN SOUTH AFRICA & ARE YOUR PERSONAL PAPERS IN ORDER?
This may seem like a silly question, but the reality will really hit home when a loved one dies unexpectedly. At the passing of a person, a whole lot of administrative procedures need to be completed that will required certain information. Most important of all are the personal wishes of the deceased individual. These are recorded in the life file. Cheap life insurance can help your family in this time of need. Life insurance is usually expensive but it need not be.
WHAT ARE SOME OF THE DOCUMENTS CONTAINED IN A LIFE FILE?
The list is of course quite long and tedious, as it would have to cover many different types of scenarios. Some of the documents are shown below that will provide you with some idea of what you may need to collect for your own life file.
- FUNERAL WISHES: In this document, you record if you would you like to be buried or cremated for instance. You indicate which funeral parlour or company you have chosen, etc.
- LAST WILL AND TESTAMENT: This document must obviously be kept up to date as your life circumstances change. The last will and testament should be as simple as possible to avoid ambiguity and possible family conflict.
- IDENTITY DOCUMENTS: In the case of married couples, the actual identity documents of both wife and husband should be kept in the file when not used. Two certified copies of the first page of each identity document are also required.
- MARRIAGE CERTIFICATE (if married): This is the original certificate indicating that you are legally married.
- ANTE-NUPTIAL CONTRACT (if married out of community of property): This would involve having to get hold of the original document.
- MARRIAGE AND IDENTITY CERTIFICATES OF EACH HEIR (if married): Two certified copies of both documents are required.
- CONTACT DETAILS OF EACH HEIR: This would involve telephone numbers, postal addresses, email addresses, fax numbers, and so on.
- MOTOR VEHICLE DETAILS: These involve all the registration certificates.
- OTHER DOCUMENTS: Municipal accounts, original policy contracts, short-term insurance contracts, life insurance policies and so on.
LIFE INSURANCE COVER FROM PRIME MERDIAN DIRECT IS A GOOD OPTION
Do you have cheap life insurance? Affordable life cover is available to all South Africans. In the event of someone passing away suddenly, things can sometimes become really tricky for those who are not prepared. For instance, there is the case of a husband and father, who suddenly departed from this world. The house was in his name, and so within a short period of time after his departure, the ownership of the property had to be transferred to a new owner, who was the wife in this case. Unfortunately, there was no life cover policy in place. This meant that unless the family could raise the fees for the transfer of ownership themselves, they would have to be put out onto the street as it were, and lose ownership of the house. Most fortunately, the family managed to scrape together sufficient finances to cover the transfer fees.
HOW DOES HAVING LIFE INSURANCE COVER HELP?
If the above-mentioned family had been more prepared by having taken out affordable life cover well in time, they would have not had to face such additional trauma apart from just losing a husband and father. Life insurance pay-outs can potentially help cover a sudden loss of income or hospital costs, or other debts that need to be settled immediately. It’s great to have that peace of mind that you have a life insurance policy tucked away in your life file. Those who are left behind will be able to immediately access your life file, and will be able to kick start things straightaway because all the documents are neatly in place.
HAVING A LIFE FILE IS NOT NEGOTIABLE
Finally, the above-mentioned sad family scenario could have been avoided if there had been a life file drawn up in the first place. By going down the document check list inside the life file well before anything happens, you can make sure that all the required documents are in place. It’s bad enough for your family who is left behind to no longer have you around, let’s not add to their trauma by not having the right documents in your life file!
Health24 recommends some tips after your loved one has passed away:
Get hold of the life file in the place that the deceased told you about some time ago.
Don’t trust anyone concerning your finances – so many people have been stabbed in the back by so-called “friends”.
If you are the executor of the estate, rather get a qualified agent to act on your behalf.
Bank accounts of your loved one are immediately frozen, which means that debit orders can bounce. To ensure that you are still covered, contact household and car insurance companies to make arrangements for the payments.
When cancelling telephone contracts, make sure that the correct departments are made aware of this in writing.
So what are you waiting for – go and start filing away those papers in that life file of yours!