Life happens, but not always the way we expect. Which is why ensuring financial wellness is so important, according to the experts at Momentum.

Wellness includes being prepared for whatever life may throw at you. You may save diligently for retirement each month, but what if an accident left you unable to work or you were diagnosed with a dread disease such as cancer? You wouldn’t want to tap into your hard-earned savings to pay the bills while being unable to earn.

Disability insurance and dread disease cover
Disability insurance and dread disease cover are important living benefits to protect you, your family and your hard-earned savings in times of physical hardship. Unlike death cover, these benefits help you maintain your standard of living during your lifetime.

How much disability cover do you need?
This varies from one person to another. A financial adviser will help work out the level of cover you need, taking into account benefits you may already have through your employer, other insurance policies, monthly debts and your dependants’ needs.

Critical illness cover, also known as dread disease cover, will help you on the road to financial survival in the unfortunate event of a critical illness.

The tax-free lump sum this insurance pays can be used to cover additional expenses or to offset reduced or lost income.

But how essential is this kind of cover if you belong to a medical scheme?

While most medical schemes provide cover for in-hospital expenses, cover for out-of-hospital expenses and cutting-edge experimental treatments is usually limited.

This is where your dread disease payout can offset shortfalls (between what the medical scheme will cover and the actual cost) and enable you to access the very best medical technology available.

Article by Momentum. www.momentum.co.za

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