Insurance Risk Benefits

An insurance thought this week, for those of us in the space where risk benefits might still be of relevance.

Many of us might get to a point in our lives when we are no longer able to look after ourselves and need some or other ‘frail’ care or maybe a live-in nurse to look after us. This has been something that I have thought about a lot. Seeing what clients and family at these stages of life are needing to pay for this care in retirement homes, has made me acutely aware of whether or not someone, including myself, will have saved enough to cope with this expense during the ‘waiting room’ years, as my mother used to call them.

In many cases, the costs are greater than what one would have been spending on looking after yourself in whatever place you were living. Also, while you and a partner are possibly still living together, the joint costs are definitely lower than when one of you moves into frail care. Suddenly there is now an additional cost of, currently, what appears to be anywhere from R12 000 to R20 000 per month. A significant difference to many people.

With all these thoughts in mind, a while ago I added a benefit to my Hollard life insurance policy which will pay an amount to me, or to a service provider, if I am over the age of 65 and in a registered long term care facility or being cared for by a registered medical professional. Currently this amount is R13 300pm, but it goes up each year and is close enough to the potential expenses for me to be happy with the amount and that it will make a real difference. In a way, it provides for the possibility of not having saved enough for retirement.

It has given me some peace of mind that this potentially burdensome expense can be catered for. You see, if I am the last one alive – we all start life as one and someone is going to be left alone in the end – my children don’t appear to be very excited about the idea of bathing and feeding me. Not sure I want them to either.