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South Africa: Setting Up Life Insurance

South Africa is one of the world’s most diverse regions. Nature is one of the main economic drivers and is a central part of the local community. The region is home to eleven languages, with Afrikaans, Zulu and Xhosa being the three top languages.

Language barriers can make it difficult for expats to get life insurance in South Africa, making online insurance policies one of the more popular options.

South Africans do have a lower life expectancy than most other areas of the world, with the 2020 expectancy being just 64.12 years. Obtaining life insurance can help provide for your loved ones when you die – which is sadly one of life’s few guarantees.

Why Term Life Insurance is Smart for South African Expatriates

There’s a reason expats flock to South Africa: it’s beautiful. The climate and weather are perfect for a reported 93% of expats, but depending on which country you plan on residing in, there are some issues and concerns.

  • Transportation infrastructure is severely lacking
  • Safety is a major concern in two-thirds of the region
  • Political issues and concerns exist

While there are many sights to see, nature to enjoy and leisure options, healthcare is expensive. Some people even decline to get care that they need because the region’s healthcare is 16% higher than the global average. Conditions that could be easily protected against aren’t due to care being expensive.

Expats should seek out critical illness insurance and term life insurance as added protections while living abroad.

Critical illness insurance provides the extensive coverage you need if you become sick or have a serious medical emergency, such as:

  • Stroke
  • Heart attack
  • Brain injury
  • Other serious medical emergencies

Life insurance is also needed because you never know what tomorrow holds. If you died tomorrow (we hope you don’t), would you be leaving your family in financial hardship? There are a lot of expenses and debts that people don’t think about when they pass on, such as:

  • Unpaid medical bills
  • Credit card and loan debt
  • Funeral expenses

Your family or loved ones will have to go on living without your financial support. They’ll need to continue paying their rent or mortgage, utility bills, food bills, education costs, health insurance and so much more.

Life will go on, and term life insurance will provide those you left behind with the financial security that a lot of people don’t have. You’ll be able to choose a beneficiary, or multiple beneficiaries, that can be added to your policy and will receive a payout upon your demise.

No one is truly prepared to die, but estate planning can certainly help. While you should have a will and other directives in place, estate planners agree that a life insurance policy is a cornerstone of an estate plan.

You can choose to take out a policy for 5 – 30 years that you pay into and provides for the beneficiaries that you choose.

Both of these insurance policies will provide you with the confidence you need to explore everything South Africa has to offer. The issue is that not all insurance policies are tailored for expats unless you seek out an expat-specific policy.

Why Obtaining Life Insurance is Difficult for Expats

Online policies offer you the quick and easy option of obtaining life insurance with policies written in your native language – you’ll understand every exception and all of the terms. You’ll also be able to secure policies written for expats that allow you to avoid potential issues with exemptions in your home country.

A lot of policies that are offered locally have stipulations that require you to remain in your local country for most of the year.

For example, let’s assume that you live in Sweden and are planning to move to South Africa. If you take out an insurance policy in Sweden, using your Swedish address, the insurer may require you to reside at this address for six or more months during the year.

If you’re living in South Africa and the worst happens, the claim may be denied because of this one discrepancy.

Online policies also have no medical exam options that allow you to secure a policy as quickly as possible without losing a day of work or having to take time out of your day to get an exam.

International term life insurance provides you with peace of mind that your insurer will honour your policy and provide your loved ones with the financial security you want them to have upon your demise.

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