Building a solid financial foundation is one of the most important things you can do in your life time. Speaking to your financial adviser about a financial plan is just as important as your routine appointments with your local GP. A lack of financial planning has been a key contributor to the huge underinsurance facing many South Africans. A study conducted in 2013 revealed that South Africans were underinsured by 24 trillion rand.
The insurance gap increases when income increases because more life and disability cover is needed to maintain a lifestyle should one die or become disabled. A loss of income to a household could affect an entire generation.
A good financial plan should speak to the following questions one might have:
- Will my financial plan look after the people I care about most when I am no longer around?
- Will my financial plan take care of me when life tells me I’m too old to work?
- Who will take care of me if I were to be hospitalised because of a disability?
- Who can I turn to when an x-ray reveals that I have a dreaded disease?
- Does my financial plan account for my current tax position or estate planning when I die?
If your financial plan does not address the above questions, the reality is that you may not be where
you want to be financially and you need to think about restructuring your existing plan or
implementing a new plan.
Financial planning can ensure you are better equipped to handle one of the five major problems we all may face during our life. Can one really ignore the importance of having financial planning in place?
In 2014 Liberty paid out over R3 billion rand in valid claims across all risk categories. The largest claim paid to a customer in 2014 was R50 million rand for Life Cover. This can never compensate for the loss of a loved one; it does, however, ensure that those left behind are financially secure.
Click to view Liberty’s 2014 claim stats: http://www.liberty.co.za/our-products/Documents/claim-stats-digital-brochure.pdf
Feel free to share this with people colleagues, friends and family and also remember that I’m always available to you for any queries you may have.
Tel +27(31) 514 6112 | Fax 086 425 8820 |
Email: Tom.Mchunu@liblink.co.za
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