Why it is important to protect your income | Business

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.PSGWealth's brink_elke, explains why risk cover is necessary to protect the livelihoods of yourself and your family in times of crises, in her latest column.

When building a resilient financial portfolio, we tend to mainly think about the investment component – yet building wealth depends on one crucial component – your ability to earn an income and protecting that is essential.Unfortunately, I often see the effects of a partner passing away, leaving a family behind with nothing, or even worse: indebted. This leaves loved ones and dependants in crisis.

Severe illness cover – this benefit takes the form of a lumpsum payment that covers you in the event of a severe illness. This will be paid as a lumpsum payment . Depending on the insurer, the benefit may pay out different percentages based on the severity of the illness. For example, you will only receive 25% of the insured amount for a less severe illness. The funds can assist with any unforeseen expenses, or if lifestyle changes are required due to a severe illness.

Global education benefit – by including this cover you will also have the benefit of protecting your children, should something happen to you including death, disability or illness. This benefit will ensure school fees are paid, as well as one tertiary degree, and depending on the provider, fees may even be covered should your child want to study abroad.

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