Insurance policies that prepare you for retirement

Investing in life, disability and long-term care insurance policies play an important role in planning your retirement. In addition to saving money during your working years, if you haven’t already taken the time to invest in policies that can help you prevent unforeseen events, then this should be at the top of your list.

Medical, property and car insurance costs are all dealt with on a day-to-day basis, but they aren’t exactly going to cover you in the event that some tragic happens. The choices you make during the course of your career are the ones that will allow you to enjoy your golden years, with cover.

Need some help?

Unexpected life experiences always change the way you feel about being covered. For example, a sudden family death or an accident that disables a close family member. If you have not yet purchased an insurance policy to protect you from these sudden events, then seeking professional advice from a trusted partner may be the best solution. Retirement professionals have a skill set that goes beyond basic financial planning. You can find expert advice on this website: http://www.africanunity.co.za/.

A general rule of thumb is to reevaluate your needs on a yearly basis, and how you choose to respond to those potential obstacles on your path to retirement, has a major influence on your overall financial well-being in 10-years time. Being resilient today can really change tomorrow.

Here are three ways to utilise insurance as part of a comprehensive retirement plan:

    • Disability Insurance

The thing with a disability is that you have absolutely no idea what tomorrow might bring. Be it a car, house, sporting injury, illness or any accident that could land you disabled, we don’t have the privilege of knowing what tragedy might strike or when.

If your employer does not offer a protection plan for this, take the time to apply for disability insurance or protection against anything that could potentially happen and leave you without an income. (Policies are available in short or long-term insurance, with the long-term coverage being over six months.)

It is extremely important to get disability insurance as it will guarantee money coming in to assist you with retirement planning. This way you can still save and invest for the future.

  • Life Insurance

Life insurance is one of those things that is important to look at, but yet we try to avoid it. If you’re young without any dependents, don’t have any debts or are independently wealthy, then perhaps it’s not the biggest necessity right now. But for many that do tick all these boxes, it is a must.

As you grow older, life insurance becomes more expensive to obtain. This specific policy is designed to protect your family or any closely related individual that may depend on you for financial support. And just like disability insurance, in the event that you can no longer work, life insurance serves as an income replacement tool to you or your family in need. This way, you can rest assured knowing that if something were to happen to you today, your family will be attended to.

  • Long-Term Care (LTC) Insurance

Some people are not aware of this type of insurance. LTC insurance provides you with an income, should you ever become dependant on someone else’s care. The most obvious reason for needing long-term care could be anything from a chronic illness to a prolonged physical illness, a degenerative disease or any other medical condition that requires professional, daily care.

For instance, if you need a nurse, caregiver or someone in specific to take care of you at home or at a medical centre, having long-term care insurance covers the cost of these services. This policy works as a supplement to medical aid and is mostly used after retirement. In the event that you need this care, general savings are not always enough to pay for these expenses. Which is what LTC policies are for.

Try your best to have access to this medical savings pool by paying your premiums when you’re working.

In conclusion:
Finding the money to pay for any sort of policy can often be an afterthought, yet the most important things to consider, especially when you have a family that depends on you. Especially when you’re young, finding the time and energy is the biggest challenge, but luckily there are professionals to assist with that.

Not only do these three policies cover you, but they ensure that no matter the event, those that are left behind are fully-covered. If you need help, consult with a specialist. This process will take time, so don’t rush into it and be smart with your money. Whatever you do, be sure to create a secure nest for yourself. This way you enjoy your retirement without worrying about unexpected expenses.

 

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