Page 31 - Waterfall City Issue 6 June 2023

What to consider with sufficient liquidity to cover debt and other related
Your financial situation should be viewed holistically, expenses, thereby ensuring that you don’t leave your
advises Comins. “This includes investments, life cover family with an unexpected financial burden.”
and short-term insurance. Creating a holistic plan of your
financial goals and needs, and keeping that plan updated Disability cover and income protection for
as your needs change over time, is crucial in creating peace the unexpected
of mind and, ultimately, financial freedom.” This is a form of cover designed to pay out in the event
of you becoming temporarily or permanently unable to
She adds that employer benefits like group life cover and work due to an illness or injury, explains Comins. She says
retirement funds are often overlooked. However, these are it is intended to replace (either in part or in full) any future
important to include in order to ensure that you have a earnings that you may lose in the unfortunate event that
true reflection of your financial plan. you are unable to perform your occupation.

Having a good understanding of the resources available to “Income protection is a benefit that provides cover during
you – such as proper budgeting, debt reduction and estate temporary illness. It does exactly what the name says – it
planning – and making use of those that are applicable pays out a percentage (usually a maximum of 75%) of your
to your individual circumstances will give you a solid income for a period of time in which you are unable to
foundation towards achieving financial freedom, says work.”
Comins. And it will help you avoid the scenario of being
caught on the back foot in the future. Dread disease cover (also known as critical
illness or trauma cover)
Talking about death: a tough but necessary Dread disease cover is aimed at providing cover for medical
conversation conditions that would have a major impact on your life.
The first and most important step when it comes to Comins explains that this includes an illness or injury that
planning for your death is creating a will. Comins says would require costly treatment or rehabilitation and that
you must make sure that those you leave behind and has a medium- to long-term recovery period, as well as
the person you trust to carry out your final wishes (the conditions that would require significant lifestyle changes.
executor of your will) are aware of what you want.
“When considering the appropriate level of dread disease
“This will assist greatly in handling your estate as efficiently cover for your specific needs, you should take into account
as possible, making sure your dependants have access factors such as your family’s history of chronic diseases,
to their inheritance rather than them having to struggle how comprehensive your medical aid is, whether or
(potentially for months or even years) before they can not you have gap cover in place, and the extent of your
access assets or funds from your estate.” disability insurance.”

Comins says life policies are another helpful tool when Always keep financial freedom as your key goal, but also
planning for your passing. “Apart from providing future plan sufficiently to ensure you create a safety net that can
income for your family, proper estate planning will reduce provide for yourself and your family if the unexpected
your estate duty liability and help provide your dependants happens.

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