If you have debts or dependents, having life cover should be non-negotiable – yet many of us are still without this essential type of insurance. A recent survey by financial research firm FMI has revealed that most South Africans lack adequate cover, meaning that they either don’t have any cover or that the cover they have is not sufficient.
Is your severe illness, disability or life cover as adequate as you think?
To find out whether you have adequate cover, ask yourself the following questions:
- If I were unable to work due to a serious illness or temporary disability, would my life cover allow me to pay off my debts and produce an income for my family?
- As a homemaker, would my severe illness cover be adequate to pay for an au pair to look after my children while I recover?
- If I were to die tomorrow, would my family be able to maintain their current lifestyle, or would they find themselves in dire straits?
If you answered “yes” to these three questions, your life cover is probably adequate. If not, you will need to look at your options and increase your amount of cover.
The need for cover in South Africa
Because South Africa does not have a social welfare system to fall back on if you are unable to provide an income for your family, the need for cover can not be emphasised enough. All South Africans who are employed or self-employed should be covered for death, disability, and severe illnesses.
Consider the fact that once you have a serious illness or disability, insurers will not cover you for that condition – it will be excluded from your policy and you will have to shoulder the costs of treatment yourself. For this reason it’s essential to take out your life cover policy as soon as possible, if you haven’t already done so.
Unfortunately, more than 80% of South Africans will suffer from a heart attack, stroke, or cancer during the course of their lives – this statistic should convince all of us just how important life cover really is.