For too many South Africans, Life Assurance companies are there to provide payments to beneficiaries in the event of death. As Wealth advisors we do so much more. For the average South African, dying too soon is the least likely event when one looks at a client’s full financial needs.
As Wealth Advisors we consider the following:
The rule of thumb is that if you save 15% of your salary over a 35 year period, you will receive 75% of your salary as a pension. How many people can honestly say they have practiced this? According to the Sanlam Retirement Benchmark Survey of 2012:
94% of pensioners cannot maintain their standard of living
31% of people over the age of 65 have to work
Nearly 1 in 3 pensioners have debt
Dread Disease or Critical Illness
The chances of acquiring a serious illness is unfortunately increasing – you are 4 times more likely to suffer a critical illness before you turn 65 than you are to die! These are the latest South African critical Illness statistics:
1 in 4 will suffer a heart attack
8 out of 100 will suffer a stroke, 60% of these are women, and 25% of those will be under the age of 40
10% of stroke patients recover completely whereas 53% will be completely dependant on others
1 in 3 people will be diagnosed with cancer – this estimated to dramatically increase
1 in every 11 women will be diagnosed with breast cancer
The average age of dread disease claims in South Africa is 41
The good news is that although there are more people suffering from serious illnesses, modern technology and medical advancements are ensuring that more people are surviving these events and have the opportunity to carry on with their lives. Make sure you have the financial support to ensure that you receive the best possible treatment.
How many months are you able to pay yourself a salary from your own savings if you cannot work because of severe illness or accident? Consider the following:
More homes are lost through disability than through death
In South Africa, only 25 of every 10 000 people who are disabled, are rehabilitated and return to work
You, as a South African, stand a 1 in 8 chance of suffering a disability before the age of 65
Not willing to take on any of these risks? Speak to a True North Wealth Adviser today to find out how we can protect you and your family. Call us on +27 (0) 10 140 2100
Together we can do the smart thing!