Money Heroes
Money Heroes is an empowering series that gives you expert advice from our Momentum Dream Team to help you on your road to financial well-being. This season starts by discussing the importance of life insurance and its significance for you.
Understanding life insurance
In our first episode, Stephne Naude, Momentum Financial Adviser, unpacks the three benefits your long-term insurance portfolio should have.
Next, Stephen van Niekerk, Executive Head of Momentum Life Insurance, shares how technology and AI is helping Momentum clients access easy discounts.
Finally, Theo Vorster, CEO of Galileo Capital, reiterates the importance of having the right life insurance in place for the life stage you’re in, which will give you and your family peace of mind.
Watch Stephne Naude talk about the benefits of long-term insurance in the video below:
The importance of long-term insurance
When it comes to insurance, there are two kinds – long-term and short-term. Short-term insurance typically covers you against any financial risks that may occur through the loss of possessions, such as your car or cell phone. Long-term insurance, on the other hand, insures you against any unforeseen circumstances like death, serious illness, and disability.
“There are normally three main types of benefits that we look at under long-term insurance – life cover, disability cover and critical illness cover,” explains Stephne Naude, Momentum Financial Planner.
Life cover
This makes sure your financial responsibilities are taken care of and your dependents are provided for if you pass away. Life cover can also make provision for any debt you might have, like a bond on your house, personal loans or credit cards.
Disability cover
Disability cover provides an income if you are permanently unable to work because of serious illness or injury.
There are usually two options for payouts. If you opt for a lump sum payout, you can use that money to make changes to your home or car if you must use a wheelchair, for example, or to pay off debt. While the income protection benefit pays you an income every month until your chosen retirement age or for your lifetime, depending on the cover you’ve chosen.
Critical illness cover
Also known as dread disease cover, it helps pay for any additional medical expenses from illnesses such as cancer, stroke or heart attack.
Although you may have medical aid, this does not always cover the costs associated with your recovery. You can use the lump sum paid out to cover any additional costs your medical aid doesn’t.
“Make sure you have all three of these long-term insurance benefits in your portfolio, so you are covered against any unforeseen circumstances,” says Naude.
Watch Stephen van Niekerk explain how AI and technology is helping Momentum clients in the video below:
How tech is shaping the insurance industry
The insurance industry is being shaped by cutting-edge technology. Take Momentum Life Insurance’s industry-first LifeReturns®, as an example.
“In short, LifeReturns® is a mechanism that allows clients to activate an upfront discount on their regular premiums to help make life insurance more affordable,” explains Stephen van Niekerk, Executive Head of Momentum Life Insurance.
A quick verification screening can be done using your smartphone’s camera. In as little as 90 seconds, it can measure your vitals, ask a few questions, and calculate a customised upfront discount of up to 35%. Plus, the healthier and fitter you are, the more discounts you’ll qualify for.
No need to leave home
With LifeReturns®, you can use your smartphone to measure your vital health factors such as blood pressure, heart rate, and stress levels from the comfort of your home.
In addition, clients under the age of 50 who are in good health, might skip traditional insurance underwriting altogether if they undergo a LifeReturns® screening.
Our artificial intelligence-based underwriting engine seamlessly evaluates their eligibility, making the process hassle-free. It fast-tracks their applications for immediate acceptance, without having invasive medical examinations.
Watch Theo Vorster emphasise choosing the right life insurance for your life stage in the video below:
Have peace of mind that adapts with you
Life insurance should be seen as an asset that provides you with peace of mind as your life changes.
“Life happens and life insurance is there to cover you when you’re unable to generate an income or pass away,” says Theo Vorster, CEO of Galileo Capital.
Revise your life insurance regularly
It’s important to keep in mind that your life insurance needs will change as you change. When you're young, peace of mind might be about providing an income for your family.
But, as you get older, your needs change as your kids grow up and become financially independent from you. Make it a priority to revise your life insurance regularly to ensure it meets your current needs.
Vorster’s advice is simple:
“Remember, life happens. The worst mistake you can make is assuming it won’t happen to you.”
Having the correct life insurance in place will give you peace of mind knowing you can provide for your family and sustain the lifestyle you’re used to should you no longer be able to work or in the event of your death.
Your financial adviser is best equipped to help you and make sure your life insurance correlates to what you want – and need – to insure. Speak to a financial adviser and put #AdviceForSuccess into action.
Financial success is as unique as a fingerprint. That’s the beauty of defining your own aspirations and ambitions. Getting to where you dream of takes grit, determination and most importantly, honesty.
With two tough years of living through the pandemic and an increasing cost of living, it will take great introspection to be honest about where we find ourselves and seek help when we need it, especially from an expert.
The right advice can propel you forward. Our financial advisers have a vested interest in you: what do you value? What are your goals? This deep discovery sets the foundation for a relationship that will bear fruits of success.
Ready to begin your journey?
Financial success is as unique as a fingerprint. That’s the beauty of defining your own aspirations and ambitions. With two tough years of living through the pandemic and an increasing cost of living, it will take great introspection to be honest about where we find ourselves and seek help when we need it, especially from an expert.
The right advice can propel you forward.
Ready to begin your journey?
Built with Shorthand