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Personal financial planning series – Insurance to protect you and your loved ones

Today we continue with our PERSONAL FINANCIAL PLANNING SERIES.

An area of Personal Financial Planning that many don’t ever consider is ensuring that you have adequate insurance in place to protect your family, your assets, and yourself in the event of death, disability, sickness or an unforeseen event.

The statistics show that there is a definite need for life cover, disability cover, income protection, dread disease cover and asset protection insurance, irrespective of age or health status.

Firstly, let us briefly look at a summary of the various areas of risk protection that are available to you…

1.) Life cover

Pays a lump sum on the death of the life assured.

2.) Disability cover

Pays out a lump sum payment on permanent disability.

3.) Income protection

Pays a monthly income in the event of sickness, temporary disability or permanent disability. Income protection will usually pay until one is able to continue working or until retirement.

4.) Dread disease cover

Pays out a lump sum in the event of you being diagnosed as having a dread disease, like cancer, heart attack, stroke, etc.

5.) Healthcare cover

Covers hospitalization and medical expenses in the event of sickness or illness.

6.) Short term insurance

Provides protection of your assets (car, house & valuables etc.) in the event of an accident or fire or theft.

Statistics show around a third of all capital disability claims were made by persons younger than 40 – so no matter how young or old you are, having disability cover and income protection in place is a necessity.

I want to encourage you to provide risk protection for your loved ones and yourself:

  • Do you have enough life cover in place to cover your debts, to provide a contingency fund and an income for your family in the event of your death?
  • Do you have enough disability cover in place to cover your debts and to provide a contingency fund in the event of your disability?
  • Do you have income protection insurance in place to protect your income in the event of sickness, temporary illness or permanent disability?
  • Do you have dread disease cover to protect yourself in the event of cancer, a heart attack, a stroke or another critical illness or disease?
  • Do you have medical cover to provide healthcare protection for you and your family in the event of sickness or illness?
  • Consider insurance to cover your assets in the event of an accident, theft or fire.

“How do you know what your life will be like tomorrow? Your life is like the morning fog—it’s here a little while, then it’s gone.” (James 4:14)

Do you have suitable Risk Protection in place to ensure that you and your family are not left in financial bondage or left destitute in the event of a tragic event?

“Anyone who does not provide for their relatives, and especially for their own household, has denied the faith and is worse than an unbeliever.” (1 Timothy 5:8)

My recommendation is that you sit down with a Financial Advisor who will be able to review your current position and ensure that you have adequate cover in place to provide protection from life threatening events.

By doing a comprehensive financial planning analysis, a Financial Advisor is able to look at your needs and objectives (taking debts, contingency and income needs into account) and make suitable recommendations to ensure sufficient protection is in place.

Jesus said…

“Anyone who listens to my teaching and follows it is wise, like a person who builds a house on solid rock. Though the rain comes in torrents and the floodwaters rise and the winds beat against that house, it won’t collapse because it is built on bedrock. But anyone who hears my teaching and doesn’t obey it is foolish, like a person who builds a house on sand. When the rains and floods come and the winds beat against that house, it will collapse with a mighty crash.” (Matthew 7:24-27 NLT)

This scripture is actually relating to the day of judgement. Please make sure that you not only provide protection for you and your family’s financial future, but also make sure that your eternity is secure.

Be wise. Build your house on the rock. Put measures in place to protect your family and yourself in the event of you having to face a storm in life. Make sure you have insurance in place for protection.

In summary…

Ask yourself the following questions…

What happens to your family in the event of your death?

In the event of your death:

  • Will your family be able to survive?
  • Will your debts be settled?
  • Will your family have enough income to cover living expenses?

What happens if you become sick or disabled?

 If you become sick or if you are disabled ….

  • Will you be able to survive financially?
  • Will you continue receiving an income, possibly from your company group scheme?
  • For how long will you receive an income, if you are off ill or disabled?

If you are sick, often one is unable to work. If you cannot work, income usually stops.

In the event of sickness or illness ….

  • Would you be able to provide suitable health care cover for your family?
  • Will you be able to settle your medical bills?

What about your assets?

In the event of an accident or a fire or theft …

  •  Are your assets and valuables insured?

Many do not have adequate provision:

  • to protect the family in the event of death,
  • to provide adequate provision in the event of sickness or disability,
  • to provide healthcare costs,
  • to provide asset protection insurance.

If you have risk protection in place, review it annually or when your circumstances change, to ensure you have enough cover in place to meet your needs.

I have heard so many sad stories where people do not have sufficient protection and adequate provision in place to provide financially in the event of death, disability and sickness.

Yes, we all need to trust in God, but according to scripture we also have a responsibility to protect our loved ones.

“The wise are cautious and avoid danger; fools plunge ahead with reckless confidence.” (Proverbs 14:16)

“The prudent see danger and take refuge, but the simple keep going and pay the penalty.” (Proverbs 27:12)

If tragedy struck, would you be left financially destitute or would you and your family be ok?

By having risk protection in place, you can protect your family and yourself against unforeseen sickness, disability or death. I want to encourage you to make sure that you have sufficient protection in place.

I would recommend that you seriously review your financial protection.

Insurance provides protection for you, and your family, in the event of death, disability or sickness. Insurance can cover your assets in the event of an accident, or a fire or theft.

I remember the late Reinhard Bonnke, a world renowned evangelist saying, “People take out fire insurance to protect their assets in the event of fire.” He then asked, “- Do you have insurance to protect you? Do you have insurance against the fires of hell?  He continued, “Only the blood of Jesus can give you this protection”.

Do you have insurance in place to protect your family, yourself and your assets? But more importantly, is your eternity secure? 

“For the wages of sin is death, BUT the gift of God is eternal life in Christ Jesus our Lord.” (Romans 6:23)

We owed a debt we could not repay. It is called sin. The good news is that Jesus gave his life on the cross. He paid the full price. He made a way so that you and I can go free. We cannot earn it. We do not deserve it, but Jesus paid it in full. All we need to do is surrender our lives to him. Do you know Jesus as your Savior? He is your fire insurance.  

If you want to start or restart your walk with God, click here to pray a simple prayer we have set up for you.

So, get your personal financial planning in place. Make sure that you have the right insurance in place to protect your loved ones, yourself, and your assets in the event of an unforeseen event. But more importantly, make sure your eternity is secure!

God bless you.

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