Most people think of money when they hear ‘financial legacy.’ But it’s so much more than that. Money isn’t everything. But it can protect your family’s future if you pass away.
Over 70% of South Africans do not have life cover. This is due party to a lack of financial education and partly to the assumption that life cover is too expensive.
None of us knows what the future holds, but it is worth your while to discuss all your options. You can be part of turning the “unknown factor” into the “know factor”. You can leave a legacy!
What Are Your Options?
Risk Cover: This may include benefits such as life cover, disability cover and critical illness cover, depending on your requirements.
Life Cover: This will take the form of a lump sum payment to your beneficiaries or your estate in the event of your death and can be implemented for life or a specific term.
Who Needs Life Cover?
Most people think that life cover is only needed later in life. Young people often dismiss protection as something for older people.
If there is anyone who would be financially affected should you die, or if you have any debt, you need life cover. If you have dependants and your monthly salary supports them, life cover is essential so that they are taken care of in the event of your death.
Remember: it is never too early to take out life cover. You most likely cannot take out a policy after you become ill.
Critical Illness Cover: There are several options available, but most would cover you for the four most common conditions such as cancer, stroke, heart attack and coronary artery bypass graft (CABG).
Statistics show an increase in the prevalence of a variety of critical illnesses. With modern medical advances and early detection, many more people are surviving illnesses that would, in the past, have been fatal. However, this often coincides with crippling high medical bills and lifestyle changes that require additional expenses. Critical Illness Cover can provide you with the extra funds needed:
- To help offset expenses that go beyond your medical aid coverage.
- For additional expenses or reduced income because of lifestyle changes.
- To access the best medical expertise and technology available.
This benefit pays out a tax-free lump sum for you to use in any way you see fit.
Disability Cover: This could be in the form of a lump sum that is paid out if you become permanently disabled and unable to perform your current job, or in the form of monthly payments (income protection), depending on the product selected. Disability cover is linked to your ability to perform your own job, or a similar job or to work at all.
Even If You Start Small, Just Get Started!