Family Protection pays a lump sum to your loved ones if you die or become terminally ill.
Having this type of cover in place can help ensure your family will not be left with a major financial burden if you die or become terminally ill. For example, a Family Protection benefit may be used to ensure:
- major debts such as the home mortgage, credit cards and personal loans can be paid out
- your family will have sufficient funds to cover ongoing day-to-day expenses
- you can provide for your children’s future education needs.
How Life Cover can help
Esma was 25 years old when she bought her first property with her husband. At the same time she bought Family Protection to ensure the debt could be repaid if she passed away.
Over the next 10 years, Esma had three children and bought two more investment properties that she hoped her children could one day inherit. She also increased her Family Protection to reflect her growing debts.
At the age of 42, Esma was diagnosed with terminal lung cancer. As she was given less than 24 months to live, Agnes made a claim for a Terminal Illness benefit under her Family Protection.
Esma received a payment of the full sum insured of $2.2 million. This allowed her and her husband to pay off the loans on all of their properties, and set aside sufficient funds to support their children through university.