Personal Insurance
Death provisions
The most important priority is to have all your debt covered at your untimely death to ensure that your estate is not insolvent. The following debts and costs need to be considered:
- Loss of family income (your salary)
- Emergency Fund
- Outstanding bonds on your property and any other debt
- Education costs
- Possible au-pair costs
- Executors & Masters fees
- Estate Duty
Disability provisions
The second objective would be to identify the needs and/or shortfalls in the case of you becoming disabled. Consider the following:
- Lump sum to cover medical expenses
- Income protector to replace your salary in the event of temporary and/or permanent disability as you would not be able to work anymore
- Emergency Fund
- Lump sum to cover all outstanding debt in the event of permanent disability
- Provisions for any alterations to your property in order to adapt to the disability
Severe Illness
Another important objective would be to consider the impact of a severe illness such as a heart attack, stroke, cancer etc. Consider the following:
- Lump sum to cover medical expenses
- Income protector to cover your salary in the event that you are unable to work because of the illness
- Emergency Fund