- Life assurance
- Disability insurance
- Income protection
What is your most valuable asset? It's not your home, although many South Africans think so. In fact, your most precious asset is your ability to earn an income, compounded by your future earnings potential.
So, this ability – like your home – must be insured.
Income protection offers you cover if you lose income due to injury or illness, or if you're forced to be absent from your regular occupation. For starters, you will need to cover your living expenses to maintain your lifestyle during the period of disability or impairment. Benefits are paid regularly and premiums are 100% tax deductible.
- Mortgage protection insurance
- Dread disease cover
Unlike other illnesses, a dread disease is not one you should fear dying from, but one you should fear surviving. Dread diseases are specified catastrophic diseases, like cancer, heart attacks and strokes, which account for up to 80% of deaths today.
What's more, a dread disease may shorten your life expectancy or the remaining number of years you can work. Additional expenses may have to be covered when you are hospitalised, like taking care of your children, organising transport, homecare duties, etc. Travel expenses may also have to be incurred as part of your treatment.
- Educational planning
- Estate duty protection
- Portfolio analysis
- Funeral cover
A common misconception in South Africa is that, if you don't have a will, your immediate family will automatically inherit everything you have when you pass away.
This is not the case. In fact, our country's Law of Intestate Succession allows the law to determine who is your closest blood relative, and to distribute your assets as it sees fit. The absence of a properly drawn up will & testament can also cause delays in the administration of your estate – and added trauma for those you've left behind.
So, seek advice from the professionals and draw up a will so that:
- Your assets go to the beneficiaries you desire, rather than those identified by the courts.
- Your chosen beneficiaries are able to get the assets sooner.
- There's a smaller chance of family disputes over property.
- You're able to let your beneficiaries know how you would like them to use your assets.
- The interests of children under 18 can be protected.
- If you own a business, a will protects your family against debt liability.
- You're able to save on estate duty with proper planning.
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