Building financial security through long-term insurance

LONG-term insurance spans a wide range of products and providers, and plays a critical role in financial planning.

- SHERRY TAPFUMA

These products meet different needs throughout life, and careful structuring is essential to ensure they support your broader financial goals. This article explores the strategic use of long-term insurance through key life stages.

Starting your career: At the start of your working life, particularly if you're single and have no dependants, your most important asset is your ability to generate an income. Income protection cover provides a monthly income should you be temporarily or permanently disabled before retirement. While this type of cover may appear simple, it is generally subject to complex underwriting where insurers assets factors such as occupation, lifestyle risks, health status and family history meaning that it's generally advisable to put this type of cover in place while you're young and healthy - and to review your cover regularly as your circumstances change.

Buying a home: When purchasing a property financed by a home loan, your bank will likely require life cover equivalent to your home loan, which ensures that your bond can be settled in the event of your passing. Keep in mind that you're not obligated to take out the cover proposed by the bank, and it may be more cost-effective to shop around for your own insurance cover, especially as this will allow you to structure the right combination of cover depending on your needs.