RISK PLANNING

Risk planning is a critical component of estate planning, ensuring that you and your family are protected from unforeseen events that could jeopardize your financial stability. Incorporating life cover, disability cover, dread disease cover, and income protection into your financial strategy safeguards against the financial impact of illness, injury, or death. Life cover ensures your loved ones are financially supported in the event of your passing, while disability and dread disease cover provide financial relief should you suffer from an illness or accident that impairs your ability to work. Income protection ensures that your lifestyle is maintained if you become temporarily or permanently unable to earn an income. Additionally, safeguarding your children through trust funds or other financial vehicles guarantees their future well-being, even in the event of your untimely demise. All of these components play an integral role in estate planning, as they help protect your assets, provide financial stability, and ensure that your family is cared for, regardless of the challenges life may throw their way. Proper risk planning ensures that your estate is preserved and continues to meet your family's needs, offering peace of mind for both you and your beneficiaries. 

Benefits That Can Be Taken Out On A Risk Policy 

Life Cover

This benefit pays out a lumpsum to your nominated beneficiaries or estate upon your passing. It could serve many purposes such as substituting future income that has now been lost within a household, settling debt in order to maintain assets like vehicles or property that have been financed, used as liquidity in terms of winding up ones estate or assisting the cost of raising minors that have been left behind.

Severe Illness Cover

This benefit pays out a lumpsum directly to you, the insured, upon the diagnosis and suffering of a qualifying severe illness. The payout is a % based payout based on the amount you have insured yourself for and the severity of the illness at hand. The payout is discretionary and can be used for any means. Some examples are to cover the additional costing of treatment above and beyond ones medical aid cover or supplementing income lost due to not being able to work. The statistics show that this benefit is the most claimed for benefit in the market due to the various types of severe illnesses we can incur whilst alive along with the probability of us getting diagnosed with a condition first before passing away being a lot higher.

Disability Cover

This benefit pays out a lumpsum based on you suffering a disability that could be permanent or temporary. It is important to remember that a severe illness can also cause some sort of disability and if one had to have both benefits in place, both could be claimed on simultaneously where applicable. Depending on your disability cover structure, this benefit would also trigger if you were unable to perform your nominated occupation due to a valid, claimable reason. These disability claim payouts help clients with the ongoing costs of the disability itself, changes one would need to make in their life like car or home modifications and again, supplementing lost income due to the inability to work for a period of time.

Income Protection

Applicable to many individuals and families in today’s society, we are dependent on living life based on our monthly earnings. What would happen if your monthly earnings had to all of a sudden come to a halt and stop, whether temporarily or permanently?  This is where Income Protection would kick in and fill that void of the financial burden upon suffering a claimable event. 

Child Educational Cover

Like many of us, once having children your outlook on life changes and so do your responsibilities. Which parent out there would not want to give their children the best possible education when and where they could and ensure that their educational needs are still taken care of if something had to happen to them as the primary source. We already know the financial impact suffering a life changing event would have on us. The Education Protection Benefit ensures that your child’s educational needs are taken care of whilst you concentrate on your recovery and other living expenses. This benefit kicks in as early as creche and goes all the way through to tertiary education, all dependent on the time of the event and the stage of your child’s educational journey. 

Estate Preserver

A very underutilized benefit by many. Winding up an estate takes time and costs money. If not planned for properly, your beneficiaries who you wished for to inherit what you have built up over you lifetime could be faced with a situation whereby that does not happen due to no liquidity available. This benefit provides indemnity cover for executor fees, creates liquidity for funeral arrangements and assist with Estate duty that may be payable.   Risk planning is not only done on an individual basis but also on a business level. 

Business Assurance

Our boutique offering also stems out to businesses looking for business assurance. This type of cover ensures that business risk is mitigated by means of having a sound and correctly structured plan of action in place for such unforeseen events.

• Contingent Liability
• Buy and Sell Agreements
• Keyperson Cover
• Shareholder’s Loan Account Cover
  

As much as it can be a sensitive topic to cover and talk about, the relevance and importance of such a discussions will remain and it is not a matter of IF but a matter of WHEN. Risk cover planning has no age and the earlier it is addressed and structured, the better the future looks when it comes to your overall financial planning journey