The price of motherhood

The price of motherhood

Make sure you have a financial plan when you take time off to raise your family Women live longer and therefore need more money on retirement than men. Yet statistics show us that women tend to have significantly less savings on retirement than men. Time off from work affects retirement savings The role of motherhood, which is so vitally important to the fabric of our society, is the reason many women find themselves more financially vulnerable in their later years. Mothers tend to stop working in order to raise their children and even if it is just for a short period of time, it has an enormous impact on their retirement savings. Even when a mother returns to the workplace, she may choose a less demanding position in order to have a balance between family and work, further reducing her ability to provide for her retirement. Let’s look at the numbers: If you contribute 15% of your salary towards your retirement for 35 years from the age of 25, you should achieve an adequate pension. If you take off 5 years from age 30, you will get a pension of 80% of this amount, or would need to contribute 3.5% more (18.5%) while working. If you take off 5 years from age 34, you will get a pension of 85% of the first example, or would need to contribute 3% more while working. The reason you would be able to save slightly less than the previous example is because you would have a greater lump sum saved by the age of 34, benefiting from compounding growth If you take...

Die vier pilare van Gevreesde-siektedekking

Daar is ‘n manier om dié komplekse produk op ‘n eenvoudige manier te ontleed en te vergelyk. Die gevreesde-siekte produk kan in vier sleutelpilare opgesom word: Die eise-gebeurtenis  Die definisie Die ontwerp Siektevoorkoms   Pilaar 1: Die eise-gebeurtenis Dit verwys breedweg na die mediese toestande wat deur die produk gedek word, soos hartaanvalle en kanker.  Sommige produkte dek ‘n lang lys van toestande wat indrukwekkend lyk terwyl ander ‘n korter lys het, wat dit na ‘n minder omvattende produk laat lyk.  Maar dit kan bedrieglik wees en daarom moet ons na die ander drie pilare kyk om ‘n vollediger prentjie te kry. Pilaar 2: Die definisie Hier raak dit bietjie meer ingewikkeld, want gevreesde-siekteprodukte bied nie dekking vir elke stadium of graad van elke siekte-toestand nie.  Om die produk bekostigbaar te hou, het elke eisgebeurtenis ‘n omvattende beskrywing van hoe die mediese toestand daar moet uitsien voordat ‘n uitbetaling gemaak word.  Sommige definisies kan so streng wees dat ‘n eis eers in ‘n baie laat stadium van die siekte uitbetaal word.  Lees die fynskrif van elke eisgebeurtenis om die toespaslikheid van die voordeel te verstaan. Pilaar 3: Die ontwerp Vir verdere ontleding moet daar opgelet word na die produk-ontwerp.  Hoe is die uitbetaling van eise gestruktureer?  ‘n Eenvoudige voorbeeld hiervan is soos volg: een produk sal slegs 50% van die polis van ‘n hartaanval uitbetaal, waar ‘n ander weer 100% dekking vir die eis verskaf. met kanker, sal sommige produkte slegs 25% van die eerste stadium van kanker uitbetaal, terwyl ‘n ander 100% sal uitbetaal vir dieselfde eis. Om te bepaal of hierdie persentasies voldoende is of nie, is...

The affect of Diabetes on your cover

Due to our fast paced lives, more and more people are being affected by diabetes each year. If gone untreated the effects could cause wider health problems. What is Diabetes? Type 1 diabetes occurs in the body when the pancreas doesn’t make enough insulin and Type 2 Diabetes occurs when the body struggles to respond normally to the insulin produced. Some of the symptoms of Diabetes are: • Increased urination • Extreme thirst • Unexplained weight loss What happens when I apply for Risk cover? • You must mention your current conditions, including diabetes. • You will be required to complete a diabetes questionnaire • An Hba1c test will be done to indicate your average sugar levels. A level of 6.8 is considered to be healthy. • A rest and effort ECG • Urine micro-albumin to indicate any signs of early kidney damage. What cover can be expected? Based on each individual underwriting decision, you can expect the following: o If medical reports show that your diabetes are under optimal control, loadings can be applied on disability and critical illness. o If a state of optimal control cannot be proven, the following can be applied:  Income benefits for accidental causes  Impairment cover with diabetes exclusions  Exclusions being placed on critical illness for those impairments that are related to diabetes such as cardiac disease  Life cover loadings. Source: FA News 2012  ...

WHAT IS INTERNATIONAL PRIVATE MEDICAL INSURANCE?

Wherever your employees are based and however much they travel throughout the world, it’s important to know that they will always be well looked after. After all, when it comes to the health of your business you can’t take any chances. That’s why the right International Private Medical Insurance is key for companies with staff working outside our borders and why it should be a serious consideration for you...

Why women need a bigger nest egg than men

  If you plan to retire as a couple, does your financial strategy take into consideration that women tend to outlive men by five to 10 years? While actuaries tell us so, if you prefer seeing real life proof a visit to an old age home should quickly convince you. According to the actuaries this means that a woman will need a much bigger nest egg than her male life partner if both want to retire together and maintain the same financial lifestyle in their golden years. Niel Fourie, Public Policy Actuary at the Actuarial Society of South Africa, says if a husband and wife retire at the same time with a comparable amount of retirement capital and similar income needs, the woman runs the risk of outliving her money, while her husband may just have enough. This means that as a woman you will need to accumulate more retirement capital than your partner during your working years in order to secure the same level of retirement income for the rest of your life.   How much more? A rule of thumb says that the average person should be contributing at least 15% of before-tax earnings towards retirement savings. Fourie says while this may be true for men, woman should be investing closer to 20% of their pre-tax income to secure enough retirement funding capital. Say each of you earn R20 000 before tax a month. Your man would need to put away R3 000 towards his retirement savings every month, but you would have to invest closer to R4 000 every month to have the same amount of...