Con­se­quences can be se­vere

Weekend Argus (Saturday Edition) - - GOODPOSTER -

The con­se­quences of not hav­ing suf­fi­cient life as­sur­ance can be dis­as­trous, Peter Dempsey, deputy chief ex­ec­u­tive of the As­so­ci­a­tion for Sav­ings & In­vest­ment SA, says.

For house­holds, in­suf­fi­cient as­sur­ance may mean hav­ing to sell the fam­ily home or a car, or a dras­tic re­duc­tion in their liv­ing ex­penses. If th­ese mea­sures do not make up for the lost in­come, the sur­viv­ing adult will have to find ways of earn­ing an ex­tra in­come.

Dempsey says it is not easy to quan­tify the ef­fect of in­suf­fi­cient life as­sur­ance on the econ­omy. How­ever, the loss of ev­ery in­come earner has the po­ten­tial to re­duce the fi­nan­cial well-be­ing of a wider group of peo­ple and, ul­ti­mately, this af­fects the coun­try as a whole.

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