Life Insurance
No matter how diligently you build your financial empire, failure to purchase sufficient insurance can put you in a desperate position in a heartbeat! The collective name for life insurance, disability cover and trauma cover is “risk cover”. Risk cover means protecting yourself against the risks in life. You therefore insure yourself against anything that could happen to you. This includes disability, accidents, traumas such as illness, and even death.
With life insurance, you protect yourself and your family against the risk of losing your income as a result of one of the above-mentioned events. When you have life insurance, the proceeds from the life insurance policy ensure that you and your loved ones continue with life, even if one of these events occurs.
Life insurance is an agreement between you (the insured) and the insurer. Under the terms of a life insurance contract, the insurer promises to pay a certain sum to a person you have chosen (a beneficiary) if the insured event occurs, in exchange for your premium payments
Disability
An accident or an illness can leave you permanently disabled and not able to work. The Capital disability benefit will cover you against loss of income due to inability to perform your professional duties.
Disability is a physical or mental condition that makes an insured person incapable of performing one or more duties of his/her occupation. Such disability may be partial, temporary or total. Disability insurance provides you with financial compensation if you are disabled by an accident or illness and unable to work.It covers more than just serious illnesses and helps you replace at least part of your income when you are at your most vulnerable. The funds can be used to cover immediate lifestyle adjustment costs such as making adjustments to your home and vehicle.
Retirement
Retirement planning is important because it enables you to invest your money for a time when you will no longer be working, but want to continue living comfortably with regular income.
Many of us have pension plans which our employers contribute to. However, this is hardly ever enough to guarantee a comfortable retirement, especially because the value of money changes over time due to factors such as inflation and interest rates. That is why it is essential for one to make additional contributions to their retirement plan, over and above the employer’s contribution.
Funeral Cover
Funeral Cover ensures that a lump sum is paid out upon the death of an insured person. Funeral insurance is an insurance policy designed to cover any costs directly related to your funeral.
There are few things in life as tragic and heart-breaking as an unexpected death in the family. This is only increased if your loved ones are trying to come to terms with their loss and having to cope with the cost of the funeral arrangements that honours the memory of their lost one. Don’t let your passing be stained with cumbersome funeral costs.
Education
Education cover makes sure your children receive the education you have always wanted for them, plan ahead and insure against the unknown.
Insurance can no longer be viewed as a luxury buy but it should be accepted as a necessity by people from all walks of life. The cost of higher education is increasing, hence, if you don't plan well, you could fall way short of the required corpus when your child is ready for college. The investment options for parents will depend on the age of the child. If the child is 3-4 years old, the investment choices and strategy will be different than for a parent whose child is 15-16 years old.
The benefits of an early start cannot be stressed enough when you are saving for a long-term goal. Starting early helps you accumulate larger sums that may not be possible later in life. Starting early also put the lesser burden on your finances because it requires a smaller outflow. Also, you may not be able to invest in certain assets if the time horizon is too short.