Let’s talk about the three D's
14 May 2019
Certain events can permanently change a person's life. While we cannot change what happens, we are able to have a measure of control on what happens afterwards. There are three life-altering events that you can plan for today to lessen their effect on tomorrow.
Death is an inevitable reality of life. However research has shown the likelihood of surviving a traumatic life-changing event is far higher than the chances of dying from such an event.
This is where life cover becomes so much more than extra money in your pocket. It's the vehicle that helps relieve the financial stress on your family during this difficult time Risk cover i.e. life, disability; dread should be a major part of every financial plan.
Living with a disability
This is difficult to contemplate. Dealing with a disability is a challenge for most people. You can lose your financial independence and suffer psychological trauma. When you consider that 2.8 million South Africans have a disability it becomes a very real possibility.
A disability creates many new challenges that require additional expenses. This is worsened if you are unable to earn an income. Disability cover supplements this loss of income, so you can adapt to changes without worrying about work. With Liberty's Income Protector, you get paid the disability benefit as well as a portion of your income for a period of time.
Surviving dread disease
A serious illness can also derail your physically and financially. 'Dread' disease, or critical illness cover, aptly describes serious illness. While receiving news of serious illness can be one of the worst things to happen, research suggests we should not necessarily dread illness.
Our 2018 claims statistics show that of those people diagnosed with dread disease between 2015 and 2018, 57% of claimants survived and therefore claimed only for dread disease and not for life cover due to death.
Suffering from a dread disease often requires rest and recovery, which is not always possible. Once leave and sick leave is exhausted, you could potentially face unpaid leave.
Why you need dread disease cover
With Dread disease you get a lump sum pay-out depending on the severity of the disease.. It frees you from stress and worry about work or returning to work before you are ready. While you cannot prevent yourself from getting a critical illness, you can reduce its financial impact, both during and after.
Survival = lifestyle protection
All these life events have the potential for drastic changes not only by reducing income but by creating expenses necessary to deal and adapt to these events. With this in mind, Liberty developed Lifestyle Protection to give you the means to continue living the lifestyle you are accustomed to.
Life is unpredictable but there is no need for a major life event to disrupt your financial well-being. Planning for both death, and survival after a serious illness makes financial sense, speak to your adviser about Liberty's Lifestyle Protector which will cover you and your family for eventualities such as illness and death, giving you and your family peace of mind when you need it most.
This article does not constitute tax, legal, financial, regulatory, accounting, technical or other advice. The material has been created for information purposes only and does not contain any personal recommendations. Please consult your financial adviser should you require advice of a financial nature and/or intermediary services.
Liberty Group Limited (Reg. no 1957/002788/06) is a registered Long Term Insurer, the Insurer or Liberty Lifestyle Protector and an Authorised Financial Services Provider (FAIS no 2409).