This Mother’s Month, ensure your children’s bright future with these 5 risk benefits
May is mother’s month and to celebrate all the moms out there, Cornerstone Financial Planning has put together a list of the top 5 risk benefits all mothers need. These benefits will not only protect you as a mother, they will protect your family and children as well.
We’ve all seen the heart wrenching advertisements for life cover and as clichéd as it might be, that question remains valid: Will your children be taken care of financially 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 you budget. Get in touch with us today if you require advice and guidance with respect to 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. In order to continue to spend the same quality time with your children, even if you are disabled, you’ll have to ensure that your income is secured, and that your new lifestyle can be accommodated.
With disability cover in place, you will be able to keep on earning your monthly salary even if you are no longer able 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.
In today’s unpredictable economy, retrenchments are an unfortunate and harsh reality many people face. For mothers, getting retrenched is even more gut-wrenching because you need to think about your children and the support they require.
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, and each one has a different structure. Therefore, the pay-out amount and the number of months you will be covered for will vary from insurer to insurer. The best way to ensure that you are adequately covered, is to contact a qualified and experienced financial planner.
Severe illness cover
Specialist medical care can be exorbitant and it’s not going to get any cheaper. 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.
Being diagnosed with a dread disease is incredibly difficult and emotional. 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 an array of illnesses. With a severe illness cover 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:
- HIV/ AIDS
- Coronary artery bypass graft
- Type 1 Diabetes
- Parkinson’s disease
- Accidental brain damage
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 may 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. To get more great content like this delivered directly to your inbox, be sure to subscribe to our newsletter. If you need assistance with any of these policies, be sure to contact Cornerstone Financial Planning and Fiduciary Services today for expert advice and qualified guidance.