Here’s the thing…you can have the latest car parked in the garage, get your kids the newest tech or splurge on idyllic family holidays, but if you truly want the best for your tribe, you will also make sure you’ve got yourself adequately covered so that their future is protected.
Why do you need life, disability- and salary protection cover?
The 28th June was Insurance Awareness Day and it’s become abundantly clear that most South Africans are underinsured or not even insured at all. In fact, in a recent blog post, we touched on the fact that the average South African household only has R600 000 life cover in place which is about 50% of what is required.
Now bear with us as we create a rather sombre picture: Imagine one day, while on your way home from work, you’re involved in a dreadful car accident which leaves you paralysed. The medical bills keep pouring in and your spouse and kids, besides being completely devastated, are wondering how they’re going to survive without your monthly paycheque?
Worse yet, what if you don’t pull through? Without a breadwinner in the family, what will things look like, for them, moving forward?
Rather bleak, right?
No one wants to land up in this situation, but one thing we do know is that life happens, and no one is able to be forewarned.
The upside is that you can be forearmed! This simply means identifying the risk of passing away, becoming ill or disabled and not being able to work, and the financial impact this will have on your family and then deciding to take responsibility and do something about it.
Here are 4 types of cover for you to consider:
If you were to suddenly drop dead, what would your family do? It’s a harsh thought, but a pertinent question. Life cover is a vital must-have if you want to ease your family’s grief – provide them with a predetermined amount of cash that they can use to pay off any outstanding debts, use it for daily living expenses and be able to give you a decent send-off.
If you become disabled, will your family be able to carry on living in the style that they’ve grown accustomed to, without your salary? If not, then this cover is for you. It pays out a lump sum if you are permanently unable to work, due to an illness or injury. This lump sum will keep the home fires burning whilst settling any medical bills or other debts that are incurred.
Imagine for a minute that you have a stroke, suffer a heart attack, need to have heart surgery or you are diagnosed with cancer. Would you be able to pay for rehabilitation or treatment plans if you weren’t able to earn a salary temporarily or permanently? Who would cover your bond and kids’ school fees? If you don’t have a clear answer to these questions, then this is your ‘sign’ that you need to add some of this cover to your life cover policy. Critical Illness Cover pays out a lump sum of money which will help you cover recuperation costs as well as basic living expenses.
What will you do without a monthly income? Your employer would be sympathetic to a point, but if your illness or injury were permanent, eventually you would be laid off. What about all your credit obligations? Who will pay your mortgage and vehicles, credit cards and personal loans? If you are lucky enough to belong to a company retirement fund that includes Group Life cover then check if you have salary protection in place and how much of your income that covers. If you don’t have any cover in place, then you know what you need to do.
The trick to life is taking responsibility for your actions and doing good by others. Can you put your hand on your heart right now and tell us you have all your bases covered?
Need to chat about a cover increase? Leave your details on our contact us page.
Until next time
The Wise About Life Team