Being financially vulnerable can be stressful. Not only does it mean struggling to keep afloat with various expenses without landing yourself in debt, but it also means working with a stretched budget. Having risk protection cover can help you stay financially protected when life throws its unexpected curveballs.
Not sure where to start? We break down three basic policies to have in place.
What is Personal Risk Cover?
Personal risk cover is a policy that is created to help protect you and your loved ones from some of those unexpected moments in life that could end up being a financial blow if you are not prepared. These covers act as an umbrella to help you and your loved ones should you lose a job, become, terminally ill, face a disability or need additional medical care that requires more than what your medical aid can cover.
Life Insurance
One of the most basic and important covers that anyone should have is a life insurance policy to protect what matters the most to them. However, some people tend to delay having life cover because of overestimating the cost of it by five times more than what it costs. If your thoughts lean towards how your loved ones will continue life without you and who will support them financially, then you know you need life insurance. The payout can be used to cover costs that come with being terminally ill, education costs, daily living expenses, paying off debt, purchasing property and more. It can be used however you and your loved ones see fit.
Disability Cover
Another small expense that could eventually end up costing you millions of Rands is not being prepared for the costs of becoming disabled. While we are still healthy and able bodied, it is easy to dismiss the chances of covering ourselves from situations that can cause us to sustain a disability - even if it is temporary. Sustaining an injury that leads to a disability is life changing. It will also have a significant impact on your finances. Disability cover will pay a lump sum which you can use for day-to-day expenses, home alterations you might need and therapy. Some covers offer protection from short-term disability, but it is important to read the conditions that come with your cover to know what you are covered for and what you won't be covered for.
Gap Cover
Should you find yourself in a situation where you are hospitalised or in need of medical treatment that your medical aid does not cover, it can be stressful. Gap cover is there to cover the amount that is not covered by medical aid so that you don't have to stress while you recover.
