Health and income protection are a part of building wealth

It is a strange quirk of human nature that we don’t like to think about health issues as being a roadblock to building wealth. When we talk about wealth creation we tend to see it as a long term project, based on projections of living a long and healthy life and retiring to a villa in the sun somewhere to live out another 20 years or so.

Unfortunately, as the COVID-19 pandemic has all too clearly shown us, life is not that predictable and we can be severely side-tracked particularly with health issues. Financial Advisors would simply not be conducting themselves responsibly if they did not take the protection of their client’s income into account and advise that health and income protection are a part of building wealth.

The times- they are a changed…

More of our clients are starting to see and feel this too, as a result of what they have personally experienced themselves or to those close to them in recent months. People are understandably feeling vulnerable and anxious about forces that seem to be very much out of their control. We are experiencing in discussions with clients that they are in a frame of mind that makes them, rightly so, want to ensure that their cover is up to scratch in the event of unforeseen circumstances.

The Long COVID

One of the worst consequences of this scourge is that it is reported that many Covid sufferers experience what is known as the ‘Long COVID.’ According to a recent survey done by the Centers for Disease Control and Prevention in the USA, ‘’35% of non-hospitalized patients who had mild COVID-19 cases did not return to baseline health 14 to 21 days after their symptoms started. And this wasn’t just in older people or people with underlying health conditions. Twenty per cent of previously healthy 18-to-34-year-olds had ongoing symptoms.’’

Additional research shows that overall, as many as one-third of individuals who had COVID-19 and weren’t hospitalized will still be experiencing symptoms up to three months later!

No longer ‘just a ‘nice to have’

Certain major insurer’s claims alone over the past year are up a whopping 60% or more for death and disability, and this is largely due to Covid claims. We are also seeing that these long-term effects of Long Covid, i.e. lungs etc. are greatly hindering some people from working to full capacity, or working at all, which generates income protection claims.

As Financial Advisors, the last thing we ever want to have to say is ‘’I told you so,’’ because it may then already be too late. We have spoken often in our articles about protecting your wealth by protecting your health and income, so just to reiterate – to have full protection against unforeseen happenings in life, your profile needs to include…

  • Life cover – and it is a myth that it won’t pay out if you die of COVID!
  • Disability: Lump sum and income protection
  • Dread disease and critical illness cover
  • Standard Medical aid & gap cover.

The Hereford group difference

We know the difference that has rewarded Hereford Group with so many loyal and satisfied clients is that we treat every individual and business as a unique entity and subsequently customise a wealth plan to suit their specific needs.
You don’t need to spend all your earnings on protecting your health or your income, but they are necessary inclusions in a holistic and well-structured wealth portfolio. Talk to us and let us assist you to get the balance right for your distinctive circumstances.

In the meantime – stay safe, stay positive – and stay vested in your future!

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