When posed with this question most of us instinctively answer, “my house, my car, my business”. Yet very few of us would say, “I am my most valuable asset”. In reality, you are your most valuable asset.
Taking responsibility comes naturally to most of us. Our main priority is to protect and support our families and those who depend on us. Yet we are inclined to underestimate the risks we face as a provider and sometimes, the only source of income. Working hard to make a living and support a family, perhaps as the head of a business, you don’t have much time to think what would happen if you were unable to work. This is where viewing yourself as a major asset is just good sense. And, as with all assets – you’re worth protecting.
In addition to providing the necessities for you and your family, your income also supports your lifestyle, the home you live in, your children’s education, your retirement provision, access to medical treatment, the car you drive, and your emergency savings and much more.
Now given that we accept the responsibility of being a provider would it not be irresponsible of us to not make adequate provisions in the event of a tragic or unforeseen event where your abilities as a provider may be compromised? For many people risk insurance is seen as a grudge purchase and I often hear people say that they hate to waste money on a precautionary for something that may never happen.
Ironically these are the same people who are very quick to insure their motor vehicles because you know how people drive in South Africa. My answer is normally a follow up question laced with sarcasm such as “you must be very proud to own a car that drives itself”. Granted this is normally followed up with the person not being terribly happy but soon they realise how short sighted they have been and concede that they have never thought of it in that way.
We live in a world where our material possessions take top priority and so we put our own value somewhere down the list, yet without our ability to earn an income we cannot provide our dependants with the lifestyle we become accustomed to. For this reason it’s important to have a form of Disability Cover in place.
Disability cover provides you with money if you are disabled to such an extent that you cannot earn an income. There are different types of disability benefits – some pay out a lump sum, whilst others pay out a monthly income. It is important to check and understand the benefits that your policy will pay out to you and under which circumstances
There is also accidental death or accidental disability cover, which pays out in the event of your death or disability due to an accident. Let me ask you another question – “How important is your family’s security to you?”
If that is a high priority, we should talk because I have a plan for you to render your family, secured! There are so many options when it comes to protecting your income, and there is no “one size fits all” approach. It is wise to meet with an executive financial planner who will do a personal analysis for you and provide you with recommendations for your unique circumstances.