Dying Younger: Death, Disability and Dread Disease
Why worry about death, disability and dread disease in your younger years?
When we’re young we are motivated by life and opportunities. We are planning ahead for careers, perhaps family and other exciting things like travel and adventure. We’re not thinking about dying. In fact, we’re rarely even thinking about growing older or having safety measures in place for old age.
But no matter your age, you should have measures in place as soon as you can to counter the unexpected that can swoop out of life and turn your plans upside-down. Dying isn’t the prerogative of the elderly – it’s part of your life from the moment you are born. And you don’t need to wait until you have children to consider the implications of your possible death or disablement due to accident or disease, you should put that concern as number one the moment you start earning money. By the time you marry and have children, you should already be well on your way to building a sound financial base for any eventuality.
Reasons to consider youthful cover
- Caring: Everyone has somebody they are connected to and care about – whether it’s your parents or siblings or if you are married, a wife and young children. It’s important not to leave this earth without providing some measure of comfort, remembrance and security to those you leave behind, whether they are dependent on you or not.
- Accidents: Young people are more at risk of an accident leading to death or disability. Mountain climbing, water-skiing, hang-gliding, deep-sea diving, amongst others – even just driving too fast – are all the activities that may cause your life to change suddenly. A life insurance is important to those you leave behind – but disability cover is vital. At any stage of your life you could be in an accident that may leave you unable to work, requiring care or expensive redesigned living conditions.
- Advantage: When you’re young, you’ll begin with the great advantage of paying lower premiums and no limitations. Each year it becomes more expensive to secure your life if you leave this responsibility unattended.
- Debt: Debts should be taken care of as soon and as often as you are able. The last thing you want to do is leave loved ones to pay these – or if you find you are unable to work – the last thing you need is the extra burden of debt.
Devising a plan
Any kind of financial commitment requires planning. What are you ultimately trying to achieve? Most people look to stop work at 65 with enough money to live on comfortably until the end of life. If you are young and starting from scratch (i.e.: no investments and no debts), you can calculate what you need to invest monthly to supplement your company pension and help you reach your retirement goal. Remember that most company pensions will leave you with a shortfall.
However, along the way to retirement life intervenes, and it is advisable to plan for the worst while hoping for the best.
Applying for life cover while you are young and healthy is the intelligent thing to do. Death is one thing, but living life with a disability or dread disease which will suck money from your finances, is another matter altogether.
What will happen to your retirement planning if you lose your job, become ill, or are involved in an accident – any of which impact on your ability to generate an income? Once you are earning a regular income, you should be investigating life insurance – but even more important would be disability and dread disease cover (both lump sum benefits), and an income protection plan.
- Ensure that you have an income protection plan that will replace your income on a temporary or permanent basis if you become unable to work for any extended period. The amount should be geared to cover your monthly expenses.
- Dread disease cover should be high on your list of priorities because you can never be sure that you may not contract such an illness. No one can with certainty assume that it will never happen to them, so don’t bank on being young and healthy and skip this aspect. Age is not necessarily an indicator of good health. While dread disease cover is a more expensive benefit than disability cover, it pays out a lump sum on the diagnosis of a severe illness, and should cover the whole of your life.
- Disability cover pays out in the event of a permanent disability and should cover twice your annual salary – plus any debts you hold. Also remember that your age, education, occupation, smoker status, gender and income all have an impact on the premium.
- Many people make the mistake of thinking their medical scheme will provide for all healthcare expenses, but mostly they merely cover in-hospital costs while all other expenses are paid out of member savings accounts. Problems therefore arise with long-term expenses – and costs associated with a critical illness can be significant when chronic medication and rehabilitation costs are taken into account.
- Every situation is unique. That is why your plan has to be carefully structured to your circumstances and results you’d like to see. Engaging with a trusted financial advisor will help you to do this properly, and so it’s wise to establish a good relationship with a recommended consultant as soon as you are able – someone who will be able to understand your current position as well as your dreams and goals.
Let our expertise be your peace of mind
The BellRyck Financial Group boasts a proud history spanning three decades. We offer short-term insurance, as well as long-term financial investment products and advisory services through our qualified financial advisers and specialist network of service providers.
Our commitment to fostering lasting relationships built on trust and personal service has allowed us to create valuable partnerships with both individuals and businesses – sound relationships that work throughout the unpredictability of life – from youth to adulthood to senior years. Prescribing to the highest standards of ethics and integrity, we have developed the acumen and flexibility to evolve seamlessly with the changing financial needs of our clients.
Find out more by visiting: www.bellryck.co.za