South African consumers have had it tough and it does not look like things are going to get any better. April looks set to make the record books with a petrol price increase of R2/litre and electricity tariff increases of around 12.5% for direct Eskom customers (municipal customers can expect their increase of 14.25% from July 1).
You get the picture, right? All over the country, moms and dads are bent over their budget sheets, running through lists of figures and trying to find an expense that they can trim – or even cut.
Well, for every parent fighting the battle of the budget, we can only offer these words of advice: prioritise your insurance policies over other expenses and cut costs in other areas! Find out why – and how you can hold on to the cover your family needs.
Living expensesIf you are struggling to pay bills now, think about how your partner or spouse would cope without your income in the event of your death? Your salary helps pay medical aid premiums, school fees, living expenses and more. A life insurance policy is the financial protection that your family needs against the loss of your income, while your disability insurance and dread disease policies are also there to replace all or some income lost due to illness or disability.
Debt repaymentsYour debt repayments swallow a large part of your monthly income. The cars that get you to work and school, the house – your pride and joy – that has become a home for your family. Make sure that your family can continue enjoying them by making sure your assets are protected against the loss of your income– whether it is due to illness, death or disability. Delay your need for instant gratification or keeping up with the Jones’s! If you stay within your budget now, you will reap greater rewards down the line.
Funeral expensesTwo things in life are guaranteed – death and taxes – both costly businesses. To lessen the blow, make sure your family can cover funeral expenses, because if you are lucky enough to have savings, they are your family’s financial lifeline and should not be spent on funeral expenses. With your funeral policy you will have the funds you need to give your loved ones a dignified burial – without having to take out a high-interest loan. In addition to the treasured memories, give your family the peace of mind knowing that they are taken care of should something happen to you.
How to prioritise your insurance policies Panic sets in when you realise that your salary is not going to cover expenses in the coming months. Don’t despair – here’s what you can do.
Talk to us: Contact us to discuss how we can tailor your policies in line with your budget without compromising on your cover and peace of mind.
Cut costs: Read these savings tips for some ideas on how you can cut expenses out of your monthly budget.
Prioritise your expenses: Rank your expenses by importance and then cut those expenses that your family can live without. For example, although your children might not agree, life insurance is more important than your satellite TV!
Do it with a debit order: Set up a debit order on pay day for your monthly policy premiums to continue enjoying the benefits and cover your policy provides.
Final word Life insurance, disability insurance and dread disease cover are an integral part of sound personal financial planning. Prioritise your premium payments in difficult times and you can rest assured that you have peace of mind and your family has the cover they need.
At 1Life, our philosophy is to Change Lives and we do just that with the Truth About Money, where you as a 1Life client have access to money management tools and tips as well as a free financial education course, estate mediation and debt management services. By helping you take control of your finances, you can take the first step towards making your financial dreams a financial reality
