Being a parent comes with a lot of joy and pride, but also a lot of personal sacrifice. As parents, we plough time, money and energy into our kids because we love them and want the very best for them.

If you were no longer around to provide financial support for your family, how will your kids continue to have what they need, follow their passions and stay on track with their goals?

How will they continue with their singing lessons or get to visit the Louvre on a school arts tour? How will they pursue their dream of becoming a pilot or afford their first set of wheels?

If you are no longer around, where’s the money going to come from? The cheapest and easiest way to guarantee an income for your family is with a simple life insurance policy – unless you already have millions stashed away in a bank account for a rainy day,

The right decision today can secure a future income tomorrow.

Life insurance is often taken out to settle debts like a home loan or vehicle finance, but few realize that it can also provide an income for family members who are left behind.

How exactly does that work?

When the proceeds of the life insurance policy pay out, the money can be invested or parked in a bank account to generate returns. These gains can be withdrawn on a month-to-month basis and used to provide a much-needed income.

The first step is determining what percentage of your income needs to be substituted if you died. Is it 50% of your salary? Or is it 100%?

Once you have an idea of what that amount is, you’ll need to determine how many years you’ll need the lump sum pay out to generate an income. If you have very young children, then that income might need to be drawn on for 20 plus years. If your kids are about to head to university then that time frame would be significantly shorter. Your financial adviser can help you to figure out exactly how to plan for your unique circumstances and how to nominate the appropriate beneficiaries.

Your family relies on the fact that you come home every month with a pay cheque and get up every morning to head off to work. A small financial commitment towards a life insurance policy can help to secure an income for your family in the future.

The time is now to get personal cover built around your family’s unique needs.

If you would like to speak to an Old Mutual financial adviser about their new Personal Cover and how it can benefit you and your family, click here to submit your details

Old Mutual Life Assurance Company (SA) Limited is a licensed FSP and Life Insurer