QUIZ

Are you financially protecting your loved ones?

Life is unpredictable, but you can make financial choices to lower the impact of curveballs on your loved ones’ wellbeing. Take this quiz to find out how you’re tracking.

1. How often do you discuss finances with your family?

A It comes up occasionally, for example, when there’s an emergency. B We have a family meeting about once a year to discuss our savings and cover. C Never. Money is a private matter.

2. Do you update your will frequently?

A No, I haven’t in the past few years. B I try to update it according to changes in my life. C I don’t have a will.

4. I look after my health by…

A Eating healthily. B Eating healthily, exercising and getting basic screenings at my local clinic. C … I need to work on that.

5. How do you plan for the future?

A I have some savings for the next few months. B I’ve set up savings goals, ways to pay off my debt, and policies for my loved ones. C I tackle each day as it comes.

3. What would happen financially if you were to lose a family member tomorrow?

A We have a funeral policy to help with the funeral costs. B We have life cover to settle funeral costs and provide for our family. C My savings would have to carry us, or we would have to claim from the UIF.

6. What would happen to your debt if you were no longer around?

A Some of it would be covered by my savings. B I have a life policy, which can help in settling debt so my family doesn’t have to. C I haven’t thought of that yet.

Answers*:

MOSTLY As:

Having a financial plan, including an updated will, is key to securing your loved ones’ future. “Update your will as things change, for example, if your marital status changes, you have children, or acquire new assets,” says David Thomson, legal adviser at Sanlam Trust.

MOSTLY Bs:

You’re on track to protecting your loved ones. “It’s important to not only take out funeral cover,” says Vicky Reddy, Head: Actuarial Business Support at Sanlam Developing Markets Limited. “There is a need for [life and funeral cover], and having both ensures a more costefficient insurance portfolio.”

MOSTLY Cs:

The death of your family’s provider can have a serious short- and long-term financial impact. “Ask a financial planner to help draw up an estate plan for you,” says Thomson. “If you have maintenance commitments, you should ensure your life insurance portfolio provides for that in the future.”

3STEPS TO FINANCIALLY PROTECT YOUR LOVED ONES

+ COVER WHAT

MATTERS

Be ready for life’s unexpected turns by asking a financial planner to assess your risk cover needs. Call 086 123 5433.

+ HAVE OPEN

CONVERSATIONS

“Sit down with your family and beneficiaries and tell them that you have funeral cover,” recommends Reddy. “Show them where the policy documents are saved or stored [to avoid delays with pay-out].”

+ STORE YOUR

WILL ONLINE

“If you have an estate plan but no will, you still won’t have control over how your assets are distributed in the event of incapacitation or death,” says Thomson. Store your will online here: sanlam.co.za/personal/ financialplanning/ willstrustsestates/Pages/ online-will.aspx