Advertise Here
Icon

Directory

IconActuaries
IconAssociations & Institutes
IconAuditors
IconBBBEE Consulting and Verification Agencies
IconBusiness Chambers
IconBusiness Process Management
IconBusiness Process Outsourcing
IconCall Centre Outsourcing & Sales
IconCompliance
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconDebit Order Collection Facilities
IconEducation and Training
IconFAIS
IconHuman Resources
IconInformation Technology and Software Partners
IconLegal
IconLife Insurance Companies
IconLife Insurance Products
IconOmbud
IconOutbound Sales
IconPolicy Administration
IconPolicy Trading
IconPublications
IconRe-insurance Companies
IconRegulatory Authorities
IconSales and Sales Management
IconSocial Grants (Government)
IconSurveys and Research
IconTraining Courses & Workshops
IconWellness Programs
Advertise Here
  Subscribe To »

Build life insurance into your long-term financial planning

Published

2021

Mon

24

May

Create financial stability for your family by making life insurance part of your long-term financial planning, says Old Mutual. 

 

Life insurance is a necessary part of financial planning, as it helps families remain financially resilient over the long term after a breadwinner has passed.  

 

Positive futures depend on long-term planning. “By taking the time now to prepare for the uncertainty of life, you can be sure your family will be financially secure, even if the worst happens to you,” explains Prudence Thipe, General Manager: Sales and Distribution at Old Mutual Mass and Foundation Cluster (MFC). 

 

“The first step is determining how much cover you need to ensure that your family would be able to maintain their lifestyle. For example, if you earn 85% of the family’s income and your spouse brings in the remaining 15%, life insurance needs to cover the potential 85% loss in the family’s income if you die,” adds Thipe. 

 

Consulting a financial adviser is useful because they can conduct a financial needs analysis and advise you on suitable insurance cover, based on your individual circumstances. 

 

“There should be no guesswork involved when it comes to planning for your family’s future,” says Thipe. “You need to know with absolute certainty that your family will be financially safe.” 

 

A good financial adviser can also help build a plan that can be adapted to suit the different stages of your life. By keeping your life insurance current, you will also help avoid the impact of inflation on future financial needs. 

 

Things to consider when planning for life insurance include: 

  • Your life stages 

 

Depending on your life stage, you may require comprehensive insurance, more so when you have children and long-term financial commitments such as home and car loans, school fees, and young children who depend on you. However, even when your children are older and have moved on and your expenses decrease, life insurance can ensure your spouse or partner is financially well cared for.   

  • The life you want for your children 

We all have dreams for our children. Life insurance is a means of providing financial security and providing them with a positive financial future. If you don’t have children, you may have other financial dependants you would like to leave a legacy to.  

  • Disability cover and severe illness cover 

By including this cover, your family is cushioned financially in the unfortunate event of a disability or severe illness. Disability cover caters to insured people who are no longer able to earn an income due to a temporary, partial, or permanent disability. Severe illness cover pays out a single amount when the insured person suffers a severe illness such as a heart attack, cancer, or stroke. 

 

“The most important part of financial planning is having a financial adviser partner with you to ensure you have insurance cover suited to your personal circumstances and needs,” concludes Thipe. 

 
Source: Old Mutual Limited
 
« Back to previous page Print this page » |
 

Breaking News »

ESG: What do boards need to know?

Environmental, social and governance (ESG) metrics can be hard to measure, but the risks surrounding them are increasing, as governments and citizens exert pressure on business to change their ways for the greater ...
Read More »

  

WHY SOUTH AFRICA’S CONFIDENCE RUNS DEEP

Sanlam is not only confident about South Africa’s future, electing to invest in the country – but says there are strong signs that growth prospects in South Africa and Africa are imminent and real. ...
Read More »

  

The future of life insurance in a post-Covid world

Covid-19 has had ‘a significant impact’ on the life insurance industry, with sharp increases in retrenchment claims, death and funeral claims, and disability income claims for people booked off work ...
Read More »

  

SANLAM INDIVIDUAL LIFE PAID OUT R4.75 BILLION IN CLAIMS IN 2020

The group saw a 60% increase in funeral claims, which it has largely attributed to Covid-19   In 2020, Sanlam Individual Life paid out 99% of all death and funeral claims. 75 billion in total claims, ...
Read More »

 

More News »

Image

Healthcare »

Image

Investment »

Image

Retirement »

Image

Short-term »

Advertise Here
Image
Image
Image
Image
Advertise Here

From The Glossary »

Icon

External Competition:

Insurers and pension funds are not only in aggressive competition with one another, but also with other contractual savings schemes (such as unit trusts). Over the years there has been a growing tendency for life insurers to compete more aggressively for personal savings. The need for this change became acute because of the rising level of inflation. Contributors to insurance policies saw the value of their contributions turned over to them at a ...
More Definitions »

 

Advertise

 

eZine

 

Contact IG

 

Media Pack

 

RSS Feeds

By using this website you agree to the Terms of Use.
Copyright © Insurance Gateway (Pty) Ltd 2004 - 2021. All Rights Reserved.