Protecting your financial future, especially in current times becomes more crucial in order to build a safety net.
All the information available online can make the process seem overwhelming, which is why we have broken down three essential financial safety nets to invest in that will come in handy for anyone who is just starting.
Before we start
This is general advice that should be used as a general guideline and not as advice. Although these points are great starting points, speaking to the relevant financial institutions or advisers that offer these policies will make finding the right fit for you easier.
Life cover
At some stage, you will need life insurance, even if you do not have any dependents. Life cover forms part of the foundation of building a safety net which can come in handy when you and your loved ones need it the most.
Not only does it payout to the beneficiaries that have been listed, but it can also be used by a policyholder while they are still living to take care of medical or other expenses, such as daily living expenses or paying off of debt you may have accumulated, should they be diagnosed with a terminal illness.
It can be used to cover an array of expenses and also be used for a charity of your choosing that can be listed as a beneficiary. While most people tend to have a cover for themselves as part of building a financial safety net, it is usually ideal to make sure that your loved ones also have one in their name too.
This could be anyone from a parent, partner, family member or business partner to make sure that you have an all-round safety net. Having your own policy in your name is a good starting point.
Terminal illness cover
Being diagnosed with a terminal illness means that the person is suffering from a life-threatening disease that sees little to no survival rate. Once a person has been diagnosed with a terminal illness it usually means that they have 6 - 12 months to live. At this point, there is very little that can be done in terms of treatment except slowing the process or easing the person's suffering.
Terminal illnesses are quite tricky, with medical aids usually not being able to cover the full expenses that come with being diagnosed, leaving you to foot a hefty bill. Being prepared for instances such as this by having a terminal illness cover, especially if you have a family history, can offer a financial buffer that is much needed during these times. Always remember that a financial safety net is there to financially protect you from life's unexpected moments.
Disability cover
Protecting your means of earning an income boils down to protecting your number one asset - You! Keeping this in mind makes it easier to find policies that are best suited to protect you even when you are faced with a life-changing situation such as a disability that could prevent you from earning an income.
Mistakes and accidents can happen, and in some cases, these could be life-altering. Having a disability cover in place is a financial shield that ensures that you and your loved ones are covered, giving you one less thing to worry about.
