There has recently been a determined effort by our local law enforcement officials to curb drunken driving and subsequently the damaging effects of accidents caused by drunk drivers. As a result of this I have often thought about the financial and emotional consequences of having a debilitating accident – be it your fault or more often someone else’s, while you are still studying or simply before you have had a chance to establish a career and take out the appropriate assurance cover for yourself. The bottom line is the consequences affect not only the young accident victim, but usually his or her entire family, with much of the financial burden landing squarely on the parents’ shoulders.

One of our preferred product providers has recently launched a product which will deal precisely with this situation, while at the same time making it reasonably affordable for someone on a tight budget. At a young age there is not really a need for life cover, so this is not included. Your biggest asset at this age is your future earning capability, and if this is taken away due to impairment or dread disease your life could turn into a nightmare, having to rely on others and the state for your future income. The product is specifically aimed at the younger generation; hence it will only cover you up to age 40 at which stage you have the option to convert it to conventional benefits without the need for medical tests or declarations. You may also convert the benefit at an earlier stage either on the anniversary of the policy or upon marriage or having a child.

Parents this is definitely a benefit you should be looking to get for your children who are still studying or have just started working and need some basic cover!
At the other end of the age scale, all of our product providers have been alerting us to the fact that we are all living longer, with the consequence that we are working longer and in some cases long after the age of 65. As a result of this most of them now offer disability and impairment cover for life. Traditionally disability cover would stop at age 60 or 65. You now have the choice to take it through to age 70 or for the rest of your life. You may be wondering why you need disability cover after you have stopped working. After retirement this benefit covers you for the loss of your ability to function independently, possibly requiring the help of a care giver or a high care facility.

I know this is a huge concern for many older clients of ours, especially the cost of such care. After retirement, should you suffer impairment, this benefit will pay out a monthly income of between 0.5% and 1.5% of the sum insured depending on the severity of the condition. The premium for the benefit will also be waived during claim and should the Whole life disability cover be linked to life cover, after retirement, any monthly payments made from the benefit will not affect the life cover. Knowing the concern a number of our clients, as well as their families, have around being able to afford a carer or high care facilities; if or when they lose their independence, as a result of illnesses or injuries, I believe this benefit is definitely something worth considering.

Regards
Steve
PH:021 975 9032