Being diagnosed with a critical illness could rob you of your ability to continue working in the immediate-term. Over the long-term, if you do not have sufficient critical illness and/or life insurance protection, your loved ones’ financial security can also be at stake.
The first level of safety you need to build is an emergency savings buffer. This is to provide for unforeseen situations in the short-term, such as getting retrenched, being injured or being diagnosed with a critical illness, helping you and your family tide through a period where you might not be earning employment income.
Next, if you are going to be unable to work in the longer term or pass on, your family’s financial future needs to be protected. Not considering this could lead to your dependents having to lower their standard of living or dip into financial resources meant for your spouse’s retirement or children’s education to fund their day-to-day expenses.
Having adequate critical illness and/or health insurance protects you and your family against this scenario.