Sheldon Shaw: Making his mark
Tattoo artist, Sheldon Shaw, explains the impact of his profession on the lives of others and why he needs income protection to continue making his mark.
Continue ReadingFirst published Cover online August 2019
According to the latest Statistics South Africa Survey1, the South African savings rate is sitting at -0.10%. The reality is, South Africans are not saving enough, and what makes this statistic alarming is that it highlights the fact that individuals are spending more than they earn. In fact, according to a recent MyTreasury.co.za report, this household savings rate ranks South Africans last against the other G20 countries in terms of savers.
It’s no wonder our savings habits are so poor when you consider that 72.5% of household income goes to servicing debt2. This debt trap creates an endless downward spiral – if your salary is constantly being eaten away by debt obligations and the incumbent exorbitant interest rates, the idea of saving must feel like a pipe dream.
As a result, life insurance is so often viewed as a grudge purchase and many South Africans are either under or totally uninsured. But the reality is that 7/10 people will experience at least 1 injury or illness during their working lives that will prevent them from being able to earn an income3, leaving South Africans dangerously exposed if they don’t have the right insurance cover. If individuals are struggling to make ends meet when they are earning an income, how would they manage with any interruption in that income?
FMI’s 2018 #RealityCheck Consumer Survey found that the inability to earn an income for as little as 3 months would have devastating effects for most South Africans, with 62% of respondents saying they’d completely run out of money in that time, and nearly 20% saying their house and assets would be repossessed.
Given our economic landscape and the financial shortfalls many individuals experience every month, you may resist the idea of Income Protection and view it as just another bill to pay. Here are 3 of the most common misperceptions why individuals don’t think they need cover.
Despite the low savings rates amongst South Africans, if an individual understood their risks, the value of their future income and how affordable Income Protection is, they’d understand the importance of protecting their Income First – so that their future dreams, ambitions and impact are always secured.
1Statistics SA 2019 Q1
2The South African Savings Institute Dec 2017 SARB Quarterly Bulletin
3FMI Claims Stats
4FMI #RealityCheck Consumer Survey 2018
5FMI Risk Stats 2019 – Temporary Disability unable to work for 14 days or more up to the age of 70 compared to passing away before the age of 70.
6Based on 6.5% annual growth and a retirement age of 65.
Tattoo artist, Sheldon Shaw, explains the impact of his profession on the lives of others and why he needs income protection to continue making his mark.
Continue Reading“The full-time job is for me to survive. The part-time job is for me to thrive. And without it, without that income, there is no thriving,” says dual income earner, Yolisa Motha.
Continue Reading“If I don’t work tomorrow, I don’t get paid for tomorrow,” says freelance graphic designer, Isabel Botha. “That’s why my income protection policy is so important to me.”
Continue Reading