The VALUE of having your affairs in order: From risk planning all the way to retirement… (Part-1)

I would like to share 2 “true stories” with you, over a 2-part series, to illustrate the value of having your affairs in order. This first story is very dear to me, it is about my parents and how quickly life can happen.

 

TRUE STORY # 1

 

In 2010 while working for Standard Bank at that time, I had to refer clients to the Standard Bank Financial Consultants as part of my job. I had referred my own father to them at that stage, who I knew did not have any Life or Disability cover, except for his Pension and Provident Funds via his employer, and my mother being a housewife. When I referred my dad to the consultant, he had liabilities to the value of R500,000 on the house and car. The Financial Advisor then created a holistic financial plan for my parents and recommended life cover and disability cover of R500,000 for each of them to repay the house and car in the event of disability and/or death, which my father accepted at a monthly premium of R529 pm.

 

In June 2011, one year after the policy was taken out, my father was diagnosed with depression, and he was medically boarded (declared disabled) by his employer. His R500,000 lumpsum amount paid out on his disability benefit and he was able to repay his car and bond in full and ensured that he did not lose any assets and could survive on the 75% Income Protector received from employer while being disabled.

 

Then on 23 July 2012, just over 2 years from taking out the policy, my father passed away and his life cover of R500,000 paid out to my mother together with his pension and provident funds and Group Life Assurance which enabled my mother to not have to withdraw any lumpsum amounts from the pension funds to pay for debt or estate costs etc. She was able to invest all the funds into an annuity product which ensured a monthly income for her from 2012, until today, and for the rest of her life.

 

The difference a R529 per month Liberty life policy made to parents’ lives, moved me to join Liberty in April 2016 after 17 years with Standard Bank, so that I can help other families plan for the unexpected, when life happens…

 

Author: 

Quintin Page – Unit leader of IWCP North West and proud IWCP financial advisor

Disclaimer

The information contained in this document does not constitute advice by IWCP. Any legal, technical or product information contained in this document is subject to change from time to time. If there are any discrepancies between this document and the contractual terms and conditions, the contractual terms and conditions will prevail. Any recommendations made by an adviser or broker must take into consideration your specific needs and unique circumstances.

IWCP is an Affiliate of Liberty Group Limited. Liberty Group Ltd is an Authorised Financial Services Provider in terms of the FAIS Act (no. 2409). Terms and Conditions apply.

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