Income protector, severe illness cover and other risk products that the COVID-19 pandemic has forced everyone to reconsider

Income protector, severe illness cover and other risk products that the COVID-19 pandemic has forced everyone to reconsider

– Chanelle Taylor (Director, Cornerstone Financial Planning)

Nothing makes you aware of your own mortality quite like a global pandemic that has already taken the lives of thousands. As devastating and heart-breaking as this whole event has been, it has definitely made people more aware of how quickly and easily disaster can strike and that we should all be prepared for the worst. At Cornerstone Financial Planning, our top priority is ensuring the financial well-being of our clients and this includes ensuring that their estate planning and risk cover is expertly curated to suit their needs.

If you do not have any of these risk products in place, the time to strongly consider them is now.

Life cover

We’ve all seen the heart wrenching advertisements for life cover and as clichéd as it might be, that question is more relevant now than ever before: What will happen to your loved ones if you should pass away? If the answer is not unequivocally yes, we would highly recommend that you take out a life cover policy or if you have one already, consider increasing its value.

Generally, life cover is very customisable and can be sculpted to meet your individual needs as well as your budget. Get in touch with us today if you require advice and guidance on the many life cover options.

Disability cover/income protector

We insure our cars in case of damage and take out medical aid plans in case we fall ill – why not insure yourself against disability? Such a massive change in your lifestyle will not only affect you, it will affect your entire family.

Ensuring that you can continue to spend the same quality time with your children, even if you are disabled, means you’ll have to ensure that your income is secured, and your new needs can be accommodated.

With disability cover in place, you will be able to keep on earning your monthly salary even if you are unable to work due to disability. You can also take out a lump sum disability plan, which will pay out a tax-free lump sum in accordance with your disability to help you pay for any adjustments your new lifestyle may require.

Retrenchment cover

In today’s unpredictable economy, retrenchments are an unfortunate and harsh reality for many. The recent announcement of a nationwide lockdown due to COVID-19, has many people worrying about the continuation of their income and for some, retrenchments will soon be an inescapable reality.

Fortunately, there is help available. With a retrenchment cover policy in place, you will continue to receive your salary for a few months after being retrenched. Unlike disability cover, this benefit is only available for a few months after retrenchment and will not pay out indefinitely.

Its main aim is to help keep the pot boiling while you find another job. This product is still very new to the market and only a few insurers offer it, each with a different structure. Therefore, the pay-out amount and the number of months you will be covered for will vary from insurer to insurer.

Severe illness cover

The cost of private medical care can be exorbitant and it’s not going to change any time soon. You might have an excellent medical aid, but sometimes that is just not enough. If you are diagnosed with a severe illness, it can leave you and your family crippled financially.

What if, instead of constantly worrying about the next hospital bill, you can spend more quality time with your family? Enter severe illness cover.

Severe illness cover is a policy benefit that offers protection against illnesses. With a severe illness policy in place, you will receive a tax-free lump sum benefit to aid in payment of additional expenses due to lifestyle changes, possible post illness rehabilitation expenses, assist with shortfalls on your medical aid and to access advanced medical treatment, which is not always covered by your medical aid.

The claim categories and illnesses covered by your policy, and the extent to which they are covered widely ranges from provider to provider and the comprehensiveness of the benefit selected. Most commonly, the following diseases may be covered under a severe illness benefit:

  • Cancer
  • Stroke
  • Coronary artery bypass graft
  • Type 1 Diabetes
  • Parkinson’s disease
  • Accidental brain damage

Funeral cover

In the event of your untimely death, make sure your family can say goodbye to you in a dignified manner by taking out a funeral cover policy. It’s one of the least expensive policies out there, but it offers great value for money with many plans starting from as little as R60,00 per month.

A funeral cover policy will cover funeral costs including service costs, burial and tombstones, catering and flowers and in some cases, groceries and transport.

Did you find our article helpful? Please let us know of our Facebook page by clicking here. You can also find us in LinkedIn and Twitter. If you need assistance with any of these policies, be sure to contact Cornerstone Financial Planning today on 011 794 6611 or email for expert advice and qualified guidance.

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