MoneyShop, Author at MoneyShop

5 tips for a debt-free Christmas

by MoneyShop

Don't let the festive season leave you swimming in debt. Christmas might be the season to be merry but often it is also the time of bad financial...

Borrow

Selling a house? You might a need a bridge loan

by MoneyShop

A bridge loan can help you while you are awaiting the proceeds from the sale of your house. However, it also has a downside. Whether you are selling...

Borrow, Home Loans

Financial advice for sexagenarians

by MoneyShop

The 60s can be the scariest time of your life, especially if your finances are not in order. The age of 60 means you have reached many milestones...

Financial Planning, Insurance, Money, Retirement Annuities

Life insurance is usually marketed to young people who are married and have children. However, you don’t stay young forever and might still need life insurance even after retiring. So is it possible to apply for life insurance after retirement? According to Pieter Wasserfall, a financial planner at Intelligent Debt Management (IDM), many insurers do not accept retirees because as you get older you may be too unhealthy to be insurable. Age is one of the factors that will determine the price of your cover. According to Mike Luyt, senior strategic and intelligence analyst at Metropolitan Retail, the earlier you purchase your life insurance, the more you save and the cheaper the insurance is. “If you leave it too late, by the time you apply for life insurance, your premiums will be more expensive as you may not be in good health anymore,” says Luyt. If purchasing life insurance after retirement is difficult - what then is recommended? The question you should ask yourself is why you need life insurance after retirement. Life insurance offers income protection in case something happens to you. It ensures that you and your dependants can maintain your standard of living without worrying about money. Will someone experience financial loss when you pass away or when you get injured? Chances are that your children are all grown up and do not depend on your income. So if this is the case, there is no need to purchase life insurance. However, if you have dependants, such as a spouse that might be affected financially by your death or loss of income you can purchase life insurance. Wasserfall says when you apply for life insurance, insurers will typically offer you two types of insurance: term life insurance and whole life insurance. Term life insurance generally provides coverage for a specified period and pays out a lump-sum when you pass on. The insurance can cover you for up to 30 years, depending on what you and the insurer have agreed on. Whole life insurance provides lifetime coverage. The insurance does not only provide a death benefit, it also has a saving component, which is called cash value. The cash value allows you to borrow from your life insurance. However, there is the risk of reducing your death benefit if you don’t pay the money back. Wasserfall advises that you take up the latter. “It is always wise to choose whole life insurance because it does not expire when you retire. However it is less affordable compared to term life insurance,” says Wasserfall. An alternative would be to extend your term life insurance. Almost all life insurance policies include a conversion option which allows you to change your policy to whole life insurance

Can you take up life insurance after you retire?

by MoneyShop

Everyone one wants to make sure that their loved ones are taken care of when they are unable to. That is why is many still see value in...

Insurance, Life Insurance

My credit score is good – so why was it denied?

by MoneyShop

Your credit score may look good, but that doen't mean your loan application will be approved. You have managed to maintain a good credit score; your account payments...

Credit Report

My credit score is good – so why was my loan application rejected?

by MoneyShop

Your credit score may look good, but that doesn't mean your loan application will be approved. You have managed to maintain a good credit score; your account payments...

Borrow, Credit Report, Home Loans, Personal Loan

Keep your credit card safe on Black Friday!

by MoneyShop

Black Friday will come and go, but the debt that you will incur will haunt for some time. It’s that time of the year again where we’re going...

Credit Card

Are you abusing your credit card?

by MoneyShop

Having a credit card is important but make sure you don't abuse it. The second quarter of 2018 saw an increased consumer appetite for credit cards. This facility...

Borrow, Credit Card

Baby steps to ensure that your children live debt-free

by MoneyShop

One of the best things that you can do for your children as a parent, is teaching them about debt management. By Athenkosi Sawutana In South Africa, where...

Borrow, Financial Planning, Money

Should you take out a loan for your partner?

by MoneyShop

Taking out a loan on your partner's behalf is adorable, but before you sign on the dotted lines, make sure you know what you are getting yourself into....

Borrow, Personal Loan