SPRING-CLEAN YOUR FINANCES

Managing Director of Netto Invest, Cape Town (2007 Financial Planner of the Year) Spring is in the air, and what better time, while possibly decluttering your home, to “spring-clean” your finances? There are three major steps involved: getting all the information together, deciding what needs to change, and taking action. - If you become disabled; or - If you suffer from a critical illness which will affect your ability to earn an income.

You also want the details of your medical scheme package.

• Find your short-term insurance policies. Sometimes cars and houses are insured on separate contracts – make sure you get them all.

• Your estate. Get a copy of your will. law, you may be able to reduce it and save on premiums.

Consider even a small amount of critical illness (also called dread disease) cover. The occurrence of cancer/heart attack/stroke is very high and you would need the financial relief.

Review your medical scheme benefits and ensure they still fit with your requirements. You can downgrade any time, but you can usually only upgrade each January.

• Short-term insurance. Is the value of your house correctly insured? Have the values of your cars been depreciated so you are not over-insured? Has all the new furniture been added to the value of your home contents? Do your security arrangements comply with the policy? Have you removed all-risks items that no longer need to be insured?

Consider gap cover to cover the difference between hospital expenses and what the medical scheme pays.

• Your estate. Read your will and ensure it still fits your circumstances.

Check that the beneficiaries on your life policies, your pension fund, and your retirement annuities are all listed and still appropriate.

Assets will help your loved ones in event of the unthinkable.

Many people don’t have a will. Have one properly drawn up, or use the free will template available at http://www. financialplanningsouthafrica.com/ free-resources/