personal finance1

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personal finance1

  1. 1. iafrica.com | mymoney | insurance Do you need life cover? Page 1 of 3 News Business Sport Motoring Entertainment LifeStyle Cooltech Travel Food Health Ask The Experts Banking Debt Management Making Ends Meet Home Finance Insurance Investme Last Upd: 07:17am 14 Oct SEARCH Do you need life cover? Article By: Andrew Warren (Liberty Life) ... the website Tue, 13 Oct 2009 16:33 Every day we are bombarded with a mix of print, radio and TV adverts on the merits of life cover. There is no shortage of examples of families being WEATHER left destitute because the breadwinner died without having a policy in place. However, like all investment Ctn | Dbn | Jhb | Other and insurance products, a life policy has specific values and is not a product that everyone needs. 14° 22° › More So when do you need it? INDICATORS A life policy is a vital component of a financial plan if you are the breadwinner of a family, have dependent Related Articles $ = R 7.43 children and financial commitments like home and > What happens when you s £ = R 12.4 car loans. Very few people would want their families > Funeral or life policy? to suffer the consequences of having their income > Cant pay your premiums? € = R 11.1 suddenly stopped. Raising children is hard enough Oil = $ 75.28 > Cancelling life insurance for a married couple, but to become a surviving Gold = $ 1118.5 spouse with debt and an insufficient salary is enough > How much life insurance? Last Update: to challenge the strongest individual. 21:30 15 Nov 09 When everyone had some kind of life policy Latest News Talked Abou SPONSORED LINKS › In the past, when legislation was less developed and Property Search insurance sales people went door to door selling their wares, everyone had some kind of life policy. Cars Online Little was done to educate the buyer and as a result many of these policies lapsed creating a certain Buy DVDs online amount of negativity around the product. Local sleepovers One of the problems with old school life policies were Book flights online! they were sold as investments. Let’s face it; selling a product that deals with your early demise is not Work money smarter exactly sexy. So an investment portion was included in the premium. Future values looked impressive, Wine of the Week (they always do if inflation is ignored) so people bought them dreaming of great wealth when they Life Insurance Quote retired. Of course this did not happen because the lion’s share of the premium went towards the risk Online Dating cover leaving very little for retirement. Save on your insurance New generation life cover offers a much better Houses for sale alternative, pure life cover with no investment portion. This makes the policy much cheaper and Go shopping! individuals can then seek investments that will deliver the returns they need. Convert anything Life and disability Henries Recipes So does everyone need a life policy? The short answer is no. When you are young, sinhttp://personalfinance.iafrica.com/insurance/1971021.htm 16/11/2009
  2. 2. iafrica.com | mymoney | insurance Do you need life cover? Page 2 of 3 dependents or debts you do not need life cover. It would be a much better option to invest in a GET IN TOUCH » disability policy and a retirement plan. Here are some sobering facts about disability: You stand a 1 in 8 chance of suffering a disability before age 65. Got something to say? One year of disability can use up to ten years’ Click here to send a mail worth of savings. to Personal Finance and Property editor Kabous le Roux. Males are twice as likely to suffer a disability as females. More homes are lost through disability than death. Disability incidence rates have more than doubled in the last 20 years. Around 10 per cent of the world’s population, or 650-million people, live with a In South Africa, only 25 out of every 10 000 people who are afflicted with a dis and return to work. Smokers are at a significantly higher risk of disability than non smokers. According to a 2007 survey compiled by True South Actuaries, South Africans a approximately R6-trillion for disability. If you are disabled at age 27, and want to enjoy a real income of R25 000 a m need a lump sum of approximately R8-million. So, no prizes for guessing that disability cover is a useful product. Article continues on page two: when life insurance doesnt make a lot of sens Page: 1 of 3 - next RSS Digg de.li.cious facebook MORE PERSONAL FINANCE Seven ways to get rich Best bank accounts in SA SAs chea Wanna be rich? New research Which ban Karin Muller of indicates that one the lowest Sanlam shares bank clearly has charges? seven tips that the most highly Research will make your rated banking ThinkMone dream come products in SA... indicates a true... cut winner African Palace Online Casino - R8.5 Million Jackpot Won! Marie van Wyk is now R8.5 Million richer! She took R80 to play the Beach Life Progressive Slot an life forever, making her an instant millionaire. "I thought I had won R850 and decided to withdraw th back in, I saw my account was sitting at R8.5 Million! I am still overwhelmed. Every day I have to r dream!" Click here to read morehttp://personalfinance.iafrica.com/insurance/1971021.htm 16/11/2009
  3. 3. iafrica.com | mymoney | insurance Do you need life cover? Page 3 of 3http://personalfinance.iafrica.com/insurance/1971021.htm 16/11/2009
  4. 4. iafrica.com | mymoney | insurance Page 1 of 2 News Business Sport Motoring Entertainment LifeStyle Cooltech Travel Food Health Ask The Experts Banking Debt Management Making Ends Meet Home Finance Insurance Investme Last Upd: 07:17am 14 Oct SEARCH Thu, 08 Oct 2009 14:45 Latest News Talked Abou ... the website Your retirement planning Later in life, if your savings and investment plans have been properly worked out and adhered to, you should have a steadily increasing net worth. Eventually, your investments should be large enough WEATHER to ensure a comfortable life for you and your spouse in the absence of that monthly salary cheque. This Ctn | Dbn | Jhb | Other would mean that you no longer require life cover. 14° 22° › More The reality is that many people, who do have life cover, don’t need it and the ones that need it don’t have it. INDICATORS Many retired people with no debt or dependents $ = R 7.43 chose to hold onto life cover in order to leave an £ = R 12.4 inheritance for their children. This is not a good idea, € = R 11.1 because as a result of life expectancies increasing older people will need to save for longer in order to Oil = $ 75.28 maintain their lifestyle. Gold = $ 1118.5 Last Update: When life cover makes no sense at all 21:30 15 Nov 09 As people age, life cover becomes more and more SPONSORED LINKS › expensive. Often individuals have more life cover in their sixties than they had when they were thirty; Property Search this does not make sense at all. Cars Online Another pitfall of some life polices is that they will Buy DVDs online often only pay out one benefit. In other words, if you die before the policy matures, your heirs will Local sleepovers receive either the death benefit or the cash value (the greater amount), but not both. Book flights online! Work money smarter Article continues on page three... Wine of the Week Life Insurance Quote Page: 2 of 3 - back | next Online Dating Save on your insurance Houses for sale RSS Digg de.li.cious facebook Go shopping! Convert anything Henries Recipes African Palace Online Casino - R8.5 Million Jackpot Won! Marie van Wyk is now R8.5 Million richer! She took R80 to play the Beach Life Progressive Slot anhttp://personalfinance.iafrica.com/insurance/1971100.htm 16/11/2009
  5. 5. iafrica.com | mymoney | insurance Page 2 of 2 life forever, making her an instant millionaire. "I thought I had won R850 and decided to withdraw th back in, I saw my account was sitting at R8.5 Million! I am still overwhelmed. Every day I have to r GET IN TOUCH » dream!" Click here to read more Got something to say? Click here to send a mail USER COMMENTS > to Personal Finance and Property editor Kabous le Roux.http://personalfinance.iafrica.com/insurance/1971100.htm 16/11/2009
  6. 6. iafrica.com | mymoney | insurance Page 1 of 2 News Business Sport Motoring Entertainment LifeStyle Cooltech Travel Food Health Ask The Experts Banking Debt Management Making Ends Meet Home Finance Insurance Investments Last Upd: 07:17am 14 Oct SEARCH Thu, 08 Oct 2009 14:48 Latest News Talked About ... the website Cash benefit not enough to retire on If you mature the policy the cash value will be paid out and your death cover will be cancelled. The cash benefit is rarely enough to retire on. You often hear people say they are fine for retirement because they WEATHER have a life policy. This is alarming because experts estimate that the average person is under funded by Ctn | Dbn | Jhb | Other 20 percent for their retirement requirements. 14° 22° › More In order to get the right mix of risk products for your needs it is vital to seek the services of a financial advisor. INDICATORS Wealthy enough to self-insure $ = R 7.43 £ = R 12.4 To avoid falling into a lifetime of life cover trap, your € = R 11.1 goal should be to become wealthy enough to be self- Oil = $ 75.28 insured long before you retire. Gold = $ 1118.5 Last Update: If you keep your life insurance and investments 21:30 15 Nov 09 separate your family will receive both in the event of your death. SPONSORED LINKS › Pure life assurance cover is very affordable way to Property Search hedge your risk and no young family should be without it while you are building your wealth. Cars Online Andrew Warren is the Executive of Product and Buy DVDs online Marketing at Liberty Life. Local sleepovers Book flights online! Work money smarter Wine of the Week Life Insurance Quote Page: 3 of 3 - back Online Dating Save on your insurance Houses for sale RSS Digg de.li.cious facebook Go shopping! Convert anything Henries Recipes African Palace Online Casino - R8.5 Million Jackpot Won! Marie van Wyk is now R8.5 Million richer! She took R80 to play the Beach Life Progressive Slot and one spin chhttp://personalfinance.iafrica.com/insurance/1971152.htm 16/11/2009
  7. 7. iafrica.com | mymoney | insurance Page 2 of 2 life forever, making her an instant millionaire. "I thought I had won R850 and decided to withdraw the money. Wh back in, I saw my account was sitting at R8.5 Million! I am still overwhelmed. Every day I have to remind myself GET IN TOUCH » dream!" Click here to read more Got something to say? Click here to send a mail USER COMMENTS > to Personal Finance and Property editor Kabous le Roux.http://personalfinance.iafrica.com/insurance/1971152.htm 16/11/2009

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