Family life is wonderful but brings with it a multitude of financial commitments and challenges. In many ways, the future of your children and spouse depends upon the financial decisions and plans you put in place. You and your partner are the rock upon which your family's prosperity and lifestyle are built. Some questions you should ask and answer:
Is your income protected? If you were suddenly unable to work, either temporarily or permanently, what effect would that have on your life and lifestyle?
- Will you be able to meet your monthly commitments?
- Will your children be able to continue at their current schools?
- Could you continue to live in your home?
- Will you be able to afford to provide them with the university education that will guarantee their future?
- How will you pay your retirement and life insurance policy premiums if you cannot work?
Loss of Income Protection
What happens after you are gone? If you die suddenly how will your family cope financially?
- Will they lose the lifestyle you've worked so hard to build?
- Will your dreams and hopes for them still be realised?
- Will they be saddled with debts that must be settled?
The death of a spouse can be financially devastating for a family. Without proper planning and provision a surviving spouse and children could lose the home in which they live and be forced to dramatically down-scale their lifestyle. It is not only the life of the main bread-winner that should be covered by life insurance. A spouse who is stays home to take care of the family, in effect, makes a substantial financial contribution. If he/she were removed, there could be substantial, adverse, financial implications for the surviving family and spouse.
Now is a good time to look at your life insurance portfolio as, in most cases, the younger you are, the less it will cost you. Will you have the cash to finance the dreams? You may dream of providing a grand wedding for your daughter one day. Or have plans to set your son up in business. You probably want to do everything in your power to provide your kids with the best possible education as it is the best guarantee of a bright future. But, without a properly structured financial plan and a carefully thought-out investment strategy, those ideas may remain nothing more than unlikely-to-be-attained dreams.
What if serious illness strikes? In the event of such an incident will you:
- Be in a position to cover your medical expenses?
- Be covered completely by your medical aid scheme or need to meet a shortfall from your own pocket?
- Be able to continue your car repayments?
- Be in a position to make pay your bond?
- Be able to continue living where you currently stay?
Illness Protection