Protecting one’s income

Disability, illness injury don’t only happen to others

I have mentioned in previous articles that one’s ability to earn an income, most certainly can be regarded as one’s biggest asset.

Some persons may see the fact rather differently, but once you sit down and add together what your total monthly income, during one’s income earning life, will amount to, I am certain that all will agree.

As an example, without taking salary increases and inflation into consideration, we can calculate R20,000 per month times 12 equals R240,000 per annum times 40 years.

This simple calculation already amounts to R9.6m. One can only imagine what the total possible loss of income over a lifetime can amount to, if inflation is taken into consideration.

I can further assure you that very few persons earning R20,000 per month will own any asset exceeding R9.6m, thus confirming that one’s ability to earn an income most certainly will be one’s biggest asset.

Most people will have insurance covering their residential and/or other fixed property, as well as their motor vehicles against damage and also total loss.

Yes, very few of us own a house or even a car worth R9.6m, but to be protected by full comprehensive insurance against all possible events, is of extremely high importance.

Having made my point, I need to ask: “Are you insured against loss of income due to disability, illness or even an accident?”

This could be a temporary loss of one’s earning ability, or even more serious, a permanent loss of your ability to earn a living. An income replacement policy has certainly become an extremely important aspect to be considered and added to any insurance portfolio.

There are people who might argue that “it only happens to other people”, but I can assure you that it can happen to any person, including ourselves.

A few months ago, I was involved in a “freak accident” and shattered my shoulder. It was really not fun walking around with my arm in a sling for 10 weeks and also not being able to work and to earn an income for three months.

The specialist’s, X-ray, as well as physiotherapy bills, kept on arriving in droves.

What a catastrophic situation, but I need to repeat, “it does not only happen to other people”.

It is of vital importance that everybody should obtain advice from a qualified and experienced financial adviser to add income replacement cover to your existing insurance portfolio.

To ensure you and your family are fully covered against all catastrophic events, feel free to call us on our office number 087-805-7712 for a confidential appointment.

Our offices are situated at 20 Southwell Road (corner of Becker Street) Port Alfred. Yes, it is the office with the bright blue light.

We offer you fully qualified and expert advice. We have ample off-street parking, as well as a ramp for easy wheelchair access.