Short term cover is long term vision.

The terms ‘short-sighted’ and ‘long term vision’ are heard every day in financial circles. Recent events, however, have given them somewhat more significance and brought them sharply into focus.

The COVID-19 pandemic is still very much with us but already we are analysing what lessons we need to have learned from it. It has made us more aware than ever before of how the unexpected can always be expected. Things not only might happen but invariably do. It would be naïve, frankly, to think otherwise.
So many businesses and individuals sadly suffered the consequence of simply not being prepared when COVID-19 suddenly paralysed the nation and turned the global economy on its head.

There is an old saying that “success is when preparation meets opportunity.” This is very true in the normal course of events, but has a hollow ring when the reality of the situation goes no further than “survival is when preparation meets upheaval!” There is one common word though in both those statements – preparation…

In upheaval – preparation is protection

There are times though that preparation is simply protection from upheaval. As every businessman knows – ebbs and tides are the day-to-day but assuring you stay afloat in a storm means having the resources to survive when it hits.

We often curse the need to spend part of our hard-earned cash on short term insurances – and a lot of people don’t – but realistically short term cover is long term vision. Once again we have to refer to the pandemic to illustrate that there is nothing that will put a bigger dent in your long term wealth plans than suffering a major short term set back!

How many people had to go running to Financial Advisors to cash in valuable assets simply through ill-prepared short term vision? Financial Advisors hate to say “I told you so,” but you can bet there were many who advised short term cover as part of a healthy holistic portfolio but were ignored.
Simply put – lack of short term cover often compromised long term wealth – so cover in the short term is actually being long-sighted – ignoring this is simply being very ‘short-sighted!’

Short term cover solutions – with long term aspirations

Remember that in this context we are not talking about only the ‘short term’ insurance for the home and motor vehicles – it is any insurance that protects one against potentially sudden disruptions.
These certainly include household fire and theft and vehicle theft cover, but road accident cover like health cover, disability and income protection all come into this. Even pre-COVID, over a million road accidents were reported in South Africa every year with, on average, over 40 people a day being fatally injured and at least 20 being left permanently disabled!

We are all unique and special – but not invincible

We started this article discussing common phrases and the most dangerous one is “It can never happen to me.” Can you name one person you know over 30 who has never been seriously ill, in a car accident or suffered some financial setback as a result of an unexpected turn of events?

We are all unique and special and Hereford Group has become a household name over the last 25 years because we understand that. Every life and every need may be different, but one thing is common – an effective long wealth portfolio should always include short term protection.

There are many ways to do this and be achieved within your budgetary constraints. Talk to a Financial Advisor today to ensure that your long term vision is fully understood, protected, ultimately realised and even surpassed. Stay positive – and stay safe!


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