Meet Ralph…
Ralph recently got married. His first child is on the way, and to top it all, he has just bought his very first home. Of course let’s not forget the two cars, the furniture, and everything else that goes along with marriage and owning a home. Quite simply, Ralph has a lot on his plate. To be honest, while it’s great knowing life is good, he’s also scared…
This is what keeps him up at night:
Recently married
Marriage is a big decision in anyone’s book. ‘For better or for worse’ springs to mind but he is starting to ask: Would that ‘worse’ include one of them losing their income?
Child on the way
Who doesn’t want their child attending the best schools, becoming a great sportsman, and being successful in their chosen field? It’s difficult enough raising them on two incomes, so what if one income fell away? How do I make sure my son achieves his dreams if I’m no longer able to help him?
Home owner
20 years is a lifetime when paying off a bond. Yes they plan to pay it off in 10 but what if something happens to me in between? What if I can’t work any longer, lose my job, and then we lose the house?
Ralph needs to chat with us because we can help him with each and every one of his concerns. It seems as if Ralph needs a combination of Salary Protection and Disability Cover.
Marriage and income
None of us can guarantee how long we’ll be around. But if someone trusts us enough to build a future with us, then we owe it to them to make sure they’re taken care of regardless of whether we’re around or not.
We don’t want to make light of the issue, but if Ralph passed away, life insurance would solve many of the family’s problems. But what if Ralph didn’t pass away? What if instead, he became a burden on his wife?
Picture the situation: Ralph’s income has fallen away but all the expenses remain.
- Would his wife, who is able to pick and choose when it comes to men, stick it out with him as an invalid?
- Even worse, would she stick with him as an invalid and with no income? What if she didn’t?
- And how would he feel knowing that he wasn’t contributing to the household?
- Worst case scenario, could he run back to his parents who were approaching retirement?
The easiest solution is simply to replace Ralph’s income with Salary Protection. Use our calculator below to see how much it would cost you for peace of mind.
Children
Educating children is an expensive exercise, full stop. Ralph had someone come around to quote on an education plan to take care of his son’s schooling needs from grade 0. Turns out he can’t afford to save that amount right now. So it’s got him thinking about what would happen if he was no longer around or disabled.
Life insurance is easy - take out as much cover as he can afford, but what if he was disabled? As it is he knows he has to secure his income since he can’t expect Susan (his wife) to take care of him.
The question is: Should he invest in a Salary Protection plan or Disability Cover to save for education?
The problem Ralph has with Salary Protection is that he is limited in the amount of income allowed. In a nutshell, Ralph is limited to 75% of his after tax income which isn’t ideal if you need to save for retirement as well as education… and still be able to afford to live.
A better solution is to take out a lumpsum amount using Different Life Disability Cover instead. See how this would work in your situation by using our calculator below.
Homeowner
Ralph wanted his home to be in the right area - close to work, schools, and shopping centres. Problem is, everyone else also wants the same thing, and to tick off those blocks meant the two of them were seriously overextended. Ralph knows things are going to be tight over the next few years but he hopes to settle the bond in the next ten years by investing every spare cent he can.
But questions keep racing through his mind:
- What would happen to our home if I died or was disabled?
- What if I was involved in a car accident tomorrow morning on the way to work and couldn’t ever work again?
- Would Susan be able to find a better paying job and pay the bond? Would the bank understand and agree to give them time until she could find a better paying job? Is that even a solution?
The harsh truth is that Ralph has his back against the wall, and when someone is in this kind of situation, the only solution is insurance. A Different Life policy could sort the bond out with Disability Cover.
So how does your situation compare?
Maybe you find yourself in a similar situation to Ralph. You might have similar needs which can be addressed through a combination of Salary Protection and Disability Cover.
Or maybe the company you work for offers either one or the other or both – Salary Protection or Disability Cover. If that’s your situation, then hats off to you. It also raises the question of: “What happens to that cover if you resign? What if your health declines and you no longer qualify for life insurance after resigning?
Why Different Life?
At Different Life we want insurance to make a difference both to the lives of people with Different Life policies and to the lives of South Africans who need it. That is why if you buy a Different Life Policy you can also join Different.org which means one of your insurance payments each year is available to you to donate to a charity project of your choice.