A recent survey of 900 respondents by Sanlam Individual Life revealed that milestones often lead to financial evaluations. One third of respondents became parents, which triggered the need to get their finances in order. Other reasons included job loss and death in the family. It’s likely you face the same reality checks.
Petrie Marx, Product Actuary at Sanlam Individual Life, says the start of the year is a great time to check in with an adviser and ensure that your needs are being met. Reality check moments, like starting a new job, becoming a parent or getting married, can also trigger concerns about finances. It’s essential to speak to an adviser and prepare for the worst and hope for the best.
Starting a Career: When you start your first job, you have 40 earning years of your working life ahead. The risk of losing income is devastating, which is why income protection and disability coverage are vital. Adding death coverage protects the family from student debt. Sanlam’s 2021 claim statistics show that 57% of income protection claims went to those under 45 years. Empowering young people with affordable income protection options leads to greater financial confidence.
Serious Relationships: Starting a serious relationship can impact your finances, including combining finances, buying a home, getting married, and having children. It’s important to discuss credit life insurance and death coverage to cover debt. Both long-term and short-term debts should be considered. Becoming a parent is the biggest reality check. Having death and sufficient income protection plus disability coverage provides peace of mind.
Illness and Disability: Illness can strike at any time, but without proper protection, it can become more challenging financially. Sanlam’s 2021 claim statistics show that 71% of sickness and 57% of disability claims went to clients under 45 years. 56% of severe illness claims went to clients under 55 years, with cancer as the leading contributor. These statistics show the importance of having sufficient coverage throughout life, not just when older.
Petrie Marx concludes, “South Africans face immense financial pressure. It can be overwhelming to manage daily needs and plan for life’s curveballs.” Let us assist you in planning for your future by assessing the risks you face and helping you manage these in the most cost-effective way possible. Meet and Expert or alternatively Contact Us for more info.