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These products help build generational wealth

20 May 2022
3 minute read

You want to achieve your financial goals, and build generational wealth. That’s why you need a plan of action! Of course you should stick to a budget, and review it constantly, and make sure your debt stays under control. But to complete the picture, you will need to find the right financial products that line up with your goals – from insurance to savings and investment products!

Financial services to help you protect and build wealth

Financial products such as life insurance, disability cover and dread disease cover are not only great for securing your family’s financial future, but also for building generational wealth! They ensure a family is protected against financial hardship if an income earner passes on or is unable to earn an income due to accident or illness.

Even if you are familiar with these products and how they work, it’s worth a quick review – because they really are essential if you want to achieve your financial goals.

Life cover
A life cover policy pays a lump sum to specified beneficiaries on the death of the life assured, for all valid claims. This amount can be used to ensure your loved ones can maintain their standard of living after you have passed on. For example, the payout can pay off the outstanding bond on the family home, pay for children’s education, or even give them a kickstart to build generational wealth!

Disability cover
Many South Africans are unable to continue working as the result of a disability. With disability cover, it is possible to replace the income of an earner who is unable to work for this reason. Having disability cover in place also means that the extra expenses associated with a disability, such as ongoing therapy and home and car adaptations, will be covered.

Dread disease cover
Dread disease cover pays a lump sum if the insured is diagnosed with a dread disease such as cancer – sadly one of the most common illnesses in South Africa. Cancer treatment can be long and arduous, and expensive. Often, it means taking time off work, which can mean less income. Even with a medical aid, not all costs are likely to be covered. A lump sum payout from a dread disease policy will make this difficult time a little easier financially, and a lot less stressful!

Top tip: You should also consider funeral cover, as this will pay for the costs of a dignified funeral for family members, ensuring you don’t have to take on debt or dip into savings – which can be detrimental to the family’s wealth-building plans!

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What type of cover and how much?

The loss of an income earner, or the loss of income if the earner cannot work, can be devastating financially. With the right cover, it doesn’t have to be.

The right combination of life, disability, dread disease and funeral cover will ensure you and your family are protected. Your financial needs, circumstances and goals are unique, so the right amount and type of cover for you won’t be the same as the right amount for your colleague or friend.

Your financial adviser can assist you with working out the best combination of cover. Alternatively, our skilled 1Life consultants will assess your needs and budget, and recommend an optimal combination of cover at an affordable premium!

Top tip: Always make sure you deal with a reputable insurer that is licensed as a financial services provider with the Financial Sector Conduct Authority (FSCA).

Investments and savings

Along with insurance, it’s important to consider savings and investment products that can grow your wealth! These include products such as unit trust funds, high-interest savings products, direct investments such as in property and shares on the Johannesburg Stock Exchange. A financial adviser is best placed to advise you on which investment products are suitable to help you achieve your goals.

Building your generational wealth and securing your family’s financial future

Achieving your financial goals is possible with the right financial products that protect and grow your generational wealth! It starts with finding the right product and cover at the right premium. When you’ve found your ideal combination of cover, you’re ready to start panning a better financial future for you and your family.

Before you set out to find the right products to achieve your goals, make sure you have:

  • Written financial goals!
  • Your debt under control
  • Some financial knowledge

Top tip: Take the Truth About Money online financial education course to improve your financial knowledge and learn money management skills!

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