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By Karin Muller, 22 November 2018
As a business, our role is to minimise the financial risks that our clients are exposed to when their lives take an unexpected turn. The personal and family insurance products we provide are designed to protect our clients’ livelihoods and their families’ futures.
This year, the tepid economic climate in South Africa and the rising cost of living has put many of our clients’ finances under strain. This often makes it more challenging for them to manage their household expenses in the wake of a family tragedy, such as illness, disability or death.
Despite these circumstances, however, we are proud to say that Sanlam Individual Life has remained resilient and we’ve continued to financially support our clients in difficult times. During 2018 to date, we provided our members and their loved ones with over R3.14 billion – and counting – in total claim pay outs.
This amount includes:
These statistics highlight the positive fact that our clients can count on us to take care of their families when the unexpected happens, no matter the market conditions. However, more importantly, they also point to the dedication that so many of our clients have shown to investing in a more secure financial future for their loved ones.
On another note, the amount of money that was required to support families after traumatic events this year shines a light on the importance of having sufficient life insurance, severe illness and disability cover in place.
Unfortunately, not all South Africans are adequately prepared – and there’s a significant insurance gap in our country. Research conducted on behalf of the Association for Savings and Investment South Africa (ASISA) shows that the average South African earner faces an insurance shortfall of
R2.1 million. This is the amount required to effectively cover their financial needs in the event of death or disability.1
In this context, it’s important to ensure that you review your financial position regularly, including your current and future needs; and evaluate whether your insurance plan and other policies provide adequate cover. Much like you go to the dentist every year, it’s worthwhile making time for an annual financial health check - make an appointment with a professional financial advisor who can help you to assess whether all your family’s bases are covered, no matter what happens along the way.