LIFE INSURANCE LIBERATIONS

With all of the pressures of modern life it is nice to know that you can offer yourself and your loved ones some reprieve from the stressful doubt of forethought. Life insurance can free you from certain worries and ease your mind when it comes to the future of your kin. Life insurance can achieve this because it...

5 MORE FACTS ABOUT HOSPITAL PLANS

As I wrote in a previous article, full medical cover has become an expensive purchase that few South Africans can afford. As we see a significant increase in the purchase of hospital plans, we are also seeing a decrease in how much our clients fully understand the big differences between an old-school medical aid and the intuitive products of today’s marketplace.

5 FACTS ABOUT HOSPITAL PLANS

Full medical cover has become an expensive purchase that few South Africans can afford. This is the reason for the increased popularity of hospital plans that cover your medical bills if you are hospitalised.

Having come from a generation that largely understood medical cover as a ‘covers all’ policy, it’s important to run through these five facts about hospital plans that are overlooked until they are needed!

WHAT WILL IT REALLY COST ME?

The current SA stats for breast cancer reveal that one in thirty-six women has breast cancer. My blog last week spoke about the general costs and overall statistics of cancer, but today I’d like to get a little more specific as to the expected ‘realistic’ impact that breast cancer will have on those who may be diagnosed this month.

Whilst it’s a scary reality, the sooner breast cancer is diagnosed the higher the chance that it can be treated through to full recovery. Breast cancer can run in families, but fewer than 10% of cases are as a result of an inherited family gene.

PLAN FOR THE HIDDEN COSTS OF BREAST CANCER

Last year I shared an article on my blog that spoke to the stark reality of the tragic impact that cancer has had (and continues to have) on almost every family in South Africa. It’s very rare, in fact, to meet someone who hasn’t either had cancer themselves, or has a close family member who has been diagnosed with some form of cancer.

As I wrote in my previous blog, cancer has increased exponentially and is, in many cases, treatable – at a cost; making cancer a life, health and personal finance issue.

According to South African cancer stats for the insured population, 100 000 cases are diagnosed in South Africa each year with 60 000 deaths from cancer each year. Around 1 in 4 men and 1 in 6 women are diagnosed with cancer in their lifetime (figures for the general population are 1 in 6 males and 1 in 8 females) with the top cancers being breast, cervical, prostate, lung, colorectal and oesophageal.

A DIFFERENT APPROACH TO DREAD DISEASE COVER

One of the reasons that I have my blog and Facebook page is that this industry changes about as regularly as the price of petrol. A financial solution that we relied on five years ago may still apply, but it also may not. There may be better options, better approaches; better products, for your needs. This is a place for me to share some of the newer ways of looking at financial planning.

When it comes to dread disease cover, which in itself is a relatively new kid on the block, and not something pleasant to consider, I have a new way of approaching the way that we could structure your plan.

RECOVERY MONEY

Unless you've already had a debilitating illness, the last thing you think about is your health failing you for anything longer than your hospital stay. As a result, we tend to only include a hospital plan, and perhaps some GAP cover in our financial planning. But what happens if the accident means that you can't work for six months?

Your hospital and GAP cover may take care of most of your in-hospital expenses (costs incurred whilst you're admitted), but how will you cover your monthly costs?

Difficult as this subject may be, stats show that we’re all going to have an unexpected brush with some major illness at some point in the future. It might be you, it might be your partner, or it might be someone close to you that you will need to support.

For many of us a tragedy of this magnitude it will have a profound effect on both our physical health and on our financial health. The wise question to ask is: how do I keep paying the bills when I'm ill?

Well, let me share the solution with you about a real breakthrough in our financial planning artillery. No, it’s not just 'another insurance product'... it’s so much more.

KIDNEYS AND RISK COVER

If you were to take a quick poll from your peers of what they fear the most, you’re most likely to receive answers like snakes, flying, thunderstorms (non-Highveld-people…), needles, the dark and, if they’re really honest, the dentist! For the most part these fears originate around our mortality and anything that threatens our health. Which means that a dentist shouldn’t really be too high on the list…

When signing any policy for personal risk cover your health and medical conditions play a fundamental role in the processing and approval of your cover. For most clients, the first thing that they think about is the condition of their heart, which for most is not really a concern. But the important two organs that are frequently overlooked, and of high interest to insurance houses, are our kidneys.

These two 130g (approximate weight) organs are essential in the urinary system and serve in the regulation of electrolytes, maintenance of acid–base balance, and regulation of blood pressure (by maintaining salt and water balance). They serve the body as a natural filter of the blood, and remove wastes which are diverted to the urinary bladder. In producing urine, the kidneys excrete wastes such as urea and ammonium, and they are also responsible for the reabsorption of water, glucose, and amino acids. The kidneys also produce hormones including calcitriol, erythropoietin, and the enzyme renin. So they’re pretty important!

Most people who suffer from chronic kidney failure will not be covered by a life insurance company, even if they’ve receive a transplant.

This is because the risk exists that the body will reject the organ. In this situation the person will need to take medication to prevent them from rejecting the organ. The medication results in its own set of additional risks.

5 TIPS FOR HEALTHIER KIDNEYS

Whenever we see an article with a list of ways to improve something, we seem to jump to the points and skip the first bit out… I hope you don't do that here! Healthy kidneys are important when applying for any kind of risk cover, so naturally an article about keeping your kidney’s in great health would be read fast!

Your weight is a consideration when applying for risk or medical cover.

So if you’re actually reading this intro and not just jumping through points one through five, then you will now know that these five points are actually great for your overall health. Not only will they benefit your kidneys, but they will improve the health of all your major systems: cardiovascular, nervous, digestive, respiratory, reproductive, skeletal and, of course, your urinary system that includes the kidneys.

All in all, they’re five great habits to build into your lifestyle if you want to enjoy a life to the full potential!

1. Stay hydrated

Always remember to drink water, every day. Not juice, not coffee, not tea, not milk: water. You can drink the others, but be deliberate in drinking water. Whether it’s in a bottle that you carry around with you or in a glass, staying hydrated helps your kidneys function properly. Your urine should be straw-coloured or paler - if it's any darker it's a sign of dehydration. However, if you’re taking vitamin B supplements, they will cause your urine to be considerably darker about 4-6 hours after taking them.

Every time you have a hot drink (tea, coffee, hot chocolate etc), have a glass of water. When you go out to a restaurant, before you place your first orders, ask for a glass of water, this will sate your appetite and you will drink less alcohol, eat less and save money! Before you go to the shops, have a glass of water and you will be less likely to buy snacky treats whilst you’re walking through the aisles.

ARE YOU PREPARED FOR THE STORM?

Bruce Cameron, finance writer for Personal Finance, recently published an article highlighting the concerning statistics that most South Africans, who are currently employed, may be seriously under-assured for death or disability cover.

His opening paragraph reads as follows:

“The vast majority of 13 million employed South Africans are ignoring the fact that, if they die prematurely or are permanently disabled, their families will not be able to maintain their standard of living – in fact, most will be left destitute.”

THE COST OF CANCER

Every year countries throughout the world dedicate the month of October to raising awareness around Breast Cancer. Cancer has increased exponentially and is, in many cases, treatable – at a cost; making cancer a life, health and personal finance issue.

There are very few families in South Africa that have not had one or more members diagnosed with some form of cancer.

Recently I read an email from Money Marketing that highlighted some of the statistics and implications of this disease on individuals and families in South Africa.

According to South African cancer stats for the insured population, 100 000 cases are diagnosed in South Africa each year with 60 000 deaths from cancer each year.

KEEP THE ROOF OVER THEIR HEADS

Keep the roof over your loved ones’ heads – no matter what.

Buying your own home is filled with amazing feelings, and often a lot of stress!  From all the forms to fill out and hoops to jump through, once you finally have your homeloan approved you still need to arrange the move - which is an entirely different type of stress.

In this process, you may overlook some features of the homeloan that you'd wish you'd have seen, so here are some pointers from Brightrock.

Investing in a new home is probably one of the biggest financial investments you’ll ever make. That’s why banks require new homeowners to buy a life insurance policy when taking out a homeloan.

Did you know that you’re not obliged to take out life insurance with your bank to secure your homeloan? You’re free to take out the policy that best meets your needs.

With BrightRock’s needs-matched insurance for your outstanding debt, you get the best debt protection for your family not only for today – but for always. You can choose exactly the right cover you need now. Then, if things change, you can change your benefits to match.

BrightRock is cover that is designed to be ‘living’ – to change as you do so. It’s made just for you at the start and then changes with you, as your life changes.

CUT BACK SALT AND CUT YOUR PREMIUMS!

If you've read up on salt facts, you'll know that too much salt can cause raised blood pressure, which increases the risk of heart disease and stroke. When you are applying for any type of risk cover, your general health plays a large part in the algorithms that are used to asses your risk… and ultimately how high or low your monthly premiums will be.

Eating healthily and getting regular exercise is crucial to keeping your body at its optimum and reducing your risk cover premiums. This blog is full of tips to reducing the amount of salt that you eat and came from England’s National Health Service’s Livewell campaign on their website. If you would like to know anything else about reducing your premiums, go to my contact page and let’s hook up!

So… back to the salty truth. You don't have to add salt to your food to eat too much of it – around 75% of the salt we eat is already in everyday foods such as bread, breakfast cereal and pre-made meals! Yes – without even trying, you’re already eating lots of salt a day. Don’t get me wrong, salt in your diet is essential for energy and electrolytes, but too much (as well as too little) can have long term negative effects on your health.

Remember, whether you're eating at home, cooking or eating out, don't add salt to your food automatically – taste it first. Many people add salt out of habit, but it's often unnecessary, and your food will generally taste good without it.

Buy lower-salt foods and snacks

1.   Use nutrition labels to help you cut down on salt:

     • high is more than 1.5g salt per 100g (or 0.6g sodium)

     • low is 0.3g salt or less per 100g (or 0.1g sodium)

2.   When shopping for food, you can take steps to cut your salt intake:

     • Compare nutrition labels on food packaging when buying everyday items. You can really cut your salt intake by checking the label and choosing the pizza, sauces or breakfast cereal that's lower in salt. Try choosing one food a week to check and swap when you're food shopping.

    • Go for reduced-salt, unsmoked back bacon. Cured meats and fish can be high in salt, so try to eat these less often.

REVIEWING YOUR POLICY (2)

A WISE CHOICE NOW PAYS OFF LATER

In my previous article I looked at the old-school approach to risk assurance policies and highlighted some areas of concern that the latest policies are trying to avoid.

The reason for this is because most life cover premiums are higher than necessary because you are sold an indiscriminate lump sum of assurance to cover many different needs with different values at different times of your life. Not only is this costing you too much, it is also probably inappropriate for your needs.

BrightRock, a comparatively new kid on the risk life assurance block, has made this claim.

It says that, as a result of the traditional “lump-sum” structure, your cover becomes increasingly unaffordable, resulting in your reducing or cancelling it in later years. Having paid from day one for the cover, you then sacrifice it at the very time you need it most.

The BrightRock claim follows the publication last year of research undertaken by True South Actuaries & Consultants, on behalf of BrightRock, which showed that many people who bought seemingly “cheap” life assurance when they were younger faced losing their cover as their premiums escalated above the inflation rate and became increasing unaffordable. So, if you missed last week’s article, just click on the older posts link below, otherwise, read on for some more information on the kind of features you should be looking out for in your policies.

WHAT TO LOOK FOR

The overview principle is that a wisely chosen policy is one that can adapt with your needs.

Each component of cover within your risk assurance policy should exactly match the behaviour and trajectory of each specific financial need you want to protect, Schalk Malan, executive director at BrightRock, says.

REVIEWING YOUR POLICY (1)

ARE YOU PAYING TOO MUCH?

You could save as much as 30% of the premiums you pay on risk life assurance – against early death, for example – by, in effect, changing your policy from one paying out a single large lump sum and priced for the maximum term, such as “whole of life”, to one covering each of your financial needs with a precisely matched duration of cover.

BrightRock, a comparatively new kid on the risk life assurance block, has made this claim.

It says that, as a result of the traditional “lump-sum” structure, your cover becomes increasingly unaffordable, resulting in your reducing or cancelling it in later years. Having paid from day one for the cover, you then sacrifice it at the very time you need it most.

And when you reach the stage where your cover becomes unaffordable, you may not be able to obtain more affordable cover, because you may have developed a health condition that makes you either uninsurable or that necessitates exclusions and/or premium loadings on your policy.

The BrightRock claim follows the publication last year of research undertaken by True South Actuaries & Consultants, on behalf of BrightRock, which showed that many people who bought seemingly “cheap” life assurance when they were younger faced losing their cover as their premiums escalated above the inflation rate and became increasing unaffordable.

WHAT TO AVOID

Schalk Malan, executive director at BrightRock, says there is a triple whammy for policyholders in the way most risk assurance premiums are calculated. The three big drawbacks are:

1. Low initial premiums: To attract new business in an increasingly competitive market, life assurance companies offer seemingly cheap premiums when you are young and unlikely to claim. But as you grow older and become more likely to claim, your premiums escalate rapidly.