With so many covers available to help you begin your journey of creating a financial safety net that will protect you when you need it the most, where do you start?
Personal risk cover is a policy that is created to protect you and your loved one from financial curveballs that life throws at us. Here are a few covers to consider when it comes to building a solid personal risk cover.
What does personal risk cover mean?
Personal risk cover, or risk cover, is a form of insurance that is paid out to a policy holder or their beneficiary when they are faced with some of life's unexpected events that can have a financial impact. For example, being diagnosed with a terminal illness, sustaining a disability or passing away while having dependants that rely on you financially. These are some of the covers you can have to begin with:
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.
Life insurance is one of the crucial safety nets you and your family will need. However, some people tend to delay having life cover because of overestimating the cost of it by five times more than what it actually 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.
Not being able to earn an income can be stressful, especially when it is because of an injury or illness. Having income protection cover will help you by paying out between 50-75% of your income. It can also come in handy when it comes to keeping you and your loved ones afloat until you are able to return to normal.
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.
Terminal illness cover
Being diagnosed with a disease that only leaves you with a year to live can be a devastating blow anyone can hear from their doctor. Not only do you and your loved ones have to prepare for the painful process, but also deal with the financial responsibilities that come with such diseases that can blow a hole through anyone's finances. Terminal illness cover is there to handle the financial expenses so that you and your loved ones can spend more time together without the stress of finances.