finance
How much cover do you really need?
A common pitfall? Guessing how much cover is‘ enough’. According to Cloete, many parents casually estimate they’ ll need just a few million rand,“ but proper calculations often show they need far more to maintain their family’ s lifestyle long-term”. The smart way to go about it? Start with a financial needs analysis( FNA) with a qualified advisor. This takes into account your income, debt, future goals, inflation, estate costs and more.
“ Ideally your cover should include Life Lump Sum cover to settle once-off debts like a bond or car, plus Life Income cover, which pays a monthly income to nominated beneficiaries,” she adds.
“ This combination ensures your family can handle big expenses and have a predictable monthly payout they can rely on.”
Life insurance for stay-at-home parents? Absolutely!
Stay-at-home parents might not bring in a salary, but their contributions have immense value. Think childcare, cooking, school runs and more.
“ Replacing these services can cost more than you’ d think,” says Cloete. Some insurance solutions recognise the importance of homemakers, offering income support should they become ill or injured.
In certain cases, partners may even receive compensation if the primary caregiver is unable to manage the household, often without requiring medical tests or formal documentation from healthcare providers.
Don’ t forget the bigger picture
Life insurance works best when it’ s part of a broader plan that includes a will, estate planning, guardianship, and clear instructions for asset distribution.“ Life insurance can ensure your family
www. babysandbeyond. co. za inherits your assets, rather than debts,” says Cloete.“ It helps pay for things like estate duties, taxes and executor’ s fees.”
And an up-to-date will is a nonnegotiable.“ Without one, the state decides how your estate is divided and who gets guardianship of your children,” Cloete warns.
Make sure your beneficiaries are named correctly on your policies.“ Without proper structuring, life insurance payouts intended for minors might end up in the government’ s Guardians’ Fund,” she adds. Flexible financial arrangements can help by allowing a trustee or trust to manage the funds on your child’ s behalf.
It’ s not the most exciting parenting task, but life insurance is a loving one. It’ s about peace of mind and about security.
Cloete puts it best:“ These solutions protect your spouse and children’ s wellbeing, prepare you for any curveballs that may come your way, and help you leave a lasting legacy of financial security.” �
Next steps
• Book a financial needs analysis with a qualified advisor.
• Review your existing cover( especially if it’ s through work).
• Talk to your partner about your family’ s long-term needs.
• Update your will and ensure your beneficiaries are current.
" Your child’ s future is worth protecting, even when you’ re not there to protect it yourself.”
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