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4 REASONS NOT TO CANCEL YOUR LIFE COVER If you are in a financial tight spot, it may cross your mind to cancel your life cover with a view to “restarting” it when times improve. Don’t consider it, advises an expert. TIMES are tough. The pandemic has affected the income of millions of South Africans. But as people scramble to find ways to reduce their monthly expenses, there’s one monthly expense which should be last on the list to be cancelled: your life insurance. That’s the advice from Bani Schmidt, sales and marketing executive at Stangen Life Insurance, who says cancelling your life insurance will not only remove the benefits it offers and leave your loved ones at risk, but it could be harder and more expensive to get new or the same
cover in the future. Bani highlights four key reasons not to cancel your life insurance: 1. You’ll never get cover at this price again If you think you can cancel your life insurance temporarily and take out a new policy when your finances get better, think again. The younger you are, the cheaper life insurance is. “Every year you age, it will cost you more to replace your cover. If you choose to cancel your policy and then reapply later, your higher age will make you liable for higher monthly premiums.
There also might be more stringent medical testing. And if you get sick in the interim, your application could be declined or it could be given a health loading, which will make it even more expensive,” says Schmidt. 2. You’ll leave your family exposed You take out life insurance for one main reason: to protect your family’s financial future if anything happens to you, and to allow them to keep paying for things like education, the home loan and day-to-day expenses. If you cancel the policy, that all goes away,
