Debt is all the same, in the sense that we borrow money now and pay it off later. What sets good debt apart from bad debt are the positive or negative consequences that arise from the particular type of debt that is taken out.
22 May 2017
Have you ever thought about why you insured your car? Or, if your car is not insured, you probably think it would be a good idea to get car insurance.
With this in mind, have you ever wondered why so many people are so concerned about insuring their car, but not half as concerned about insuring themselves? Your greatest asset is not your car, it’s you! You and your ability to earn an income is what pays for everything else, including the car, house, and the food that your family survive on.
Just like your car is vulnerable to the risk of an accident, so is your ability to earn an income. Death is a certainty, and you don’t know when it will come. In addition to this risk, a severe illness or disability can have an earth-shattering effect on your ability to earn an income, even erasing it completely. This is a not a theoretical risk, but a reality for many.
Last year Liberty Life alone, only one of the many life insurance companies in South Africa, paid out over R352 million in claims from people suffering a permanent disability or severe illness. This was just for men and women younger than 44! Of course, this records people who were protected. Their families are better off after the horrible events that befell them, because they had the correct protection in place. Many others suffered the same without that protection. Whatside of that fence are you on?
The simple point of this illustrative exercise is: the foundation of a secure financial future for your family is you, so protect yourself with adequate life cover. Did you know that Insurance Busters, the sister company of DebtBusters, has designed a special life insurance product especially for DebtBusters clients that is both affordable and free of any underwriting? Email firstname.lastname@example.org if you think it is time to get yourself, and your family, covered.
But whether or not you and/or your family receive financial protection after a serious event like death, illness or disability, residual debts can chew away at the value of this protection. This issue is escalated when you still have a large bond to pay off. Your life cover should be there to provide for your family’s day-to-day needs, not to pay off your bond. This is where bond cover comes in. Bond cover, much like life cover, offers you a financial safety-net in the event of a life-changing event like death or disability, but is specifically aimed at settling your bond so that you and your family can remain in your home. Insurance Busters offers bond cover protection designed especially for DebtBusters clients.
There are many other ways to protect your family financially, including funeral cover, savings plans, and yes, car insurance. Insurance Busters can help you with all of these things. But if the full package isn’t financially feasible for you right now, ensuring that your family is financially compensated and your bond is paid-off in the event of a tragic event is the foundation to ensuring your family has a financially secure future.
[Author: Wade Profe]