Losing a loved one is one of the most painful things a person can go through. Not having that person to speak to, get advice from or just enjoying the sound of their laughter.
All that remains is memories in the minds of people that person had in their life, photographs, and small traces in daily tasks which for a second reminds us of that person.
This is the sad reality when it comes to the loss of somebody. But what makes it even worse is when there is financial hardship that follows, if the person was a breadwinner, and had financial dependents and that income is no longer there to provide.
We lost two clients
We lost two clients over the past 10 days, and it is a both scary and sad reality we all must face.
Our clients had their affairs in order, and we have been able to not only execute their last wishes with their Will’s they had drafted through us, but when we discussed their estate planning and financial needs, the clients opted to take adequate Life Insurance for their financial dependents and loved ones.
Whilst the family grieves the loss of their loved ones, they do not have to worry about the financial impact.
“You don’t take out life insurance because you are going to die. You take life insurance because your family and loved ones will live on.”
South African statistics show that we are underinsured by more than 10 trillion rand, and this number is rising.
Be Proactive in your Financial Planning Approach.
Get your Last Will and Testament Drafted and Signed. You do not need assets to draft a Will. Anybody that is able and working should have a valid Will.
When your life stage and circumstances change, update your Will. This includes, buying a new house, having a child or the loss of a loved one.
Look at the monthly financial need that your loved ones would have if you were no longer there, and then capitalize it over the term needed. This should give you an indication of how much life cover you require. Remember to include estate expenses like executors’ fees, conveyancing, and estate duty.
“I have never met a widow or loved one who said that their parent/ spouse left them too much life insurance.”
Pension and Provident Funds with work: people often forget to update their beneficiaries when they get divorced, have another child etc. Speak to your Human Resources person at work and check and if needed update your beneficiaries.
Draft a personal balance sheet, and look at your net worth.
Should you have any questions, or if there is anything we can do to assist you, please feel free to reach out to us.
WALLSTREET FINANCIAL SERVICES
Your Financial Planning Partner