FANews
FANews
RELATED CATEGORIES
Category Life Insurance

Before you tie the knot

31 August 2011 Old Mutual
Sylvia Walker

Sylvia Walker

Distracted by the exciting flurry of invites, fittings and honeymoon bookings, couples tend to avoid conversations relating to their finances before marriage. While women often have their own financial plan before getting engaged, having an individual plan is not enough. As a married couple, you’ll need to take each other’s financial needs into consideration. So before you tie the knot, it’s important to set aside time to talk about money matters.

Market Development Manager for Old Mutual South Africa, Sylvia Walker, believes that it is vital to make provision for your partner in case something happens to you unexpectedly - and your partner should do the same. “Protection against death or disability resulting from an accident will give you both peace of mind, knowing that your family will be taken care of financially,” she says. Old Mutual’s claims experience shows that 25% of deaths are due to accidents.

“Disability cover can cover the costs of making adjustments to your lifestyle after an accident. Even if you are completely disabled and unable to work, adequate cover will ensure that you will continue to receive an income,” she explains. “Life cover is crucial to ensure that your loved one is taken care of in the event of your death.” Life cover can help to ease the burden of debt such as an outstanding bond and other costs upon your death.

Having an updated will is an important part of a financial plan, to determine how your estate gets divided when you pass.

If you are married in community of property and pass away, your spouse is entitled to half of all the assets in the communal estate and is therefore effectively the owner of half of all your assets. The other half of your assets will be divided between the people you nominated as heirs in your will. If however, your marriage is out of community of property, your spouse will have no automatic right to any of your assets and your entire estate will devolve in terms of your will, unless there is a maintenance claim instituted against the estate.

Without any will and without children, your spouse will inherit your entire estate, whether you are married in or out of community of property. If you do have children, it’s more complex, but your estate is basically divided up between your spouse and your children.

“There are major implications should you pass away without having a will in place – especially if there are children involved,” confirms Walker. So speak to a financial adviser or your broker about updating your financial plan. “An adviser can help you to get your finances in order, leaving you to focus on enjoying life to the fullest,” she says.

Quick Polls

QUESTION

How do you help your clients to maintain perspective when they get overwhelmed by today’s doom and gloom headlines?

ANSWER

Focus on long-term goals
Highlight global innovation
Reinforce diversification
Still figuring it out
fanews magazine
FAnews February 2025 Get the latest issue of FAnews

This month's headlines

Unseen risks: insuring against the impact of AI gone wrong
Machine vs human: finding the balance
Is embedded insurance the end of traditional broker channels?
Client aspirations take centre stage as advisers rethink retirement planning
Maximise TFSA contributions before year-end
Subscribe now