Life and disability benefits are important components of one’s overall plan leading towards retirement. At Seed we believe one should have the correct benefits for the correct reasons.

Life insurance:

You need life insurance generally for the following reasons:

1. Maintain your family’s living standard up to retirement. This lump sum benefit should finance an income to the remaining spouse up to retirement and for dependent children to at least age 23. The income the remaining spouse receives should also be enough to contribute towards retirement.
2. Finance the present value of the remaining spouse’s pension shortfall.
3. Clearing any outstanding debt
4. Financing any funeral expenses
5. Financing a potential tax burden on one’s estate

Disability cover:

You need disability insurance for the following reasons:

1. Maintaining your living standard by replacing your income level up to retirement. This is generally expressed as a percentage of your current salary e.g. 70% of your current salary.
2. Maintaining your living standard by requiring a lump sum benefit for making changes to your house and/or car or additional medical expenses that your medical scheme is expected not to cover. 
3. To cover any additional expense as a result of a severe illness e.g. heart attack or cancer.