The accumulation of assets goes hand and hand with risks. Imagine buying a brand new car and immediately on entering the road you get involved in an accident without even reaching your home. The most effective way of mitigating such risk is to transfer it to an insurer which will cover financial loss of your car and household contents. Although you will feel the pain should such event happen but the insurer will repair or else replace your asset.
Your only obligation is to pay the monthly premium which is calculated according to each individual’s risk profile.
Your risk profile is based on your age, driving record, the value of the car, where the car is parked and whether it has anti-theft devices in place.
When a child is born we celebrate the birth of a new member of the family. It feels good to see our children growing physically and mentally under our own guidance. However the responsibility that is laid upon us as parents to nurture children’s future can be affected negatively by unexpected eventuality.
The fact is that we all do not know when it will be our last day on earth. Yet the upbringing of our children requires financial support from us as parents. In order to make provision for such unexpected eventuality we have to take life insurance policy to replace our income when we die. No one wants a child or their loved ones to downgrade their standard of living after they have passed on.
We at Afrovision offer tailor made solutions that will give peace of mind in the event of passing on of a bread winner. In addition to loss of income through death, there are other benefits that are of utmost important like disability, dread diseases and sickness benefits. In the event of disability, your monthly expenses still stand which means that your responsibilities remain the same.
When you are young you don’t worry about who will provide for medical emergencies should you get sick. This is a moment where you totally rely on your parents to take care of you in all respect. However as you grow old, you realise that there are things that are out of our control like getting sick or else involved in an accident.
Although it is not guaranteed that you will get sick but the fact of the matter is that you don’t have to gamble with your life.
Household’s savings in South Africa (SA) are disturbingly low at approximately 1.7 percent. Statistics reveal that less than 10 percent of the South African population will retire comfortably. Household debts as a percentage of disposable income remain at approximately 75 percent in SA. This reveals that people live beyond their means.
They spend on things that they cannot afford and forget about the future. These figures are shocking as more people are going to depend on their children and government when they retire. Poor personal financial planning is as a result of this phenomenon.