Life is a series of events, both positive and negative, and how you plan for and manage them makes all the difference. Nobody likes to think about the worst happening to them, but tragedy can strike at any time and the trauma will only be increased if you are unprepared financially.

You also need to plan for major changes to your family, such as the birth of a baby. Estimates vary, but raising a child from birth to 18 costs ±R1.68m for a middle-income South African family. It’s essential, then, to prepare. Here is a basic checklist to ensure your dependants are looked after:

plan Your finances
Assess how much the baby will cost. Can you cover the extra expenses? How long will you be living on one income after the baby comes? If you move from having a double income to a single one, will you cope?

maternity/paternity leave
If you’re employed, make plans for how long you want to be off and understand the implications. Check your employer’s maternity benefit and then consider your options. Living on a reduced income or one salary will mean major adjustments.

medical cover
Are you covered for the cost of care during pregnancy and the birth? Change medical aids if you aren’t.

make a will
If you die without a will your estate takes much longer to settle. This leaves your family without any money. You must name someone you trust as the executor of your will and ensure your child will be raised and provided for in the way you intended by appointing a legal guardian.

life insurance
Research shows South Africans are way under-insured against untimely death and/or being unable to work due to serious disability. But by not thinking ahead, you could be sentencing your family to a life of misery if you are the main breadwinner.There are two types of life insurance: pure risk insurance, and endowments. Pure risk insurance, or term insurance, covers the risk of the death of the individual only. This is a good basic insurance, providing for the highest sum insured at the lowest rates. An endowment plan covers the family but also pays out a saving and a bonus at the end of the payment term. However, it costs more. Also check any employer-provided life insurance, which is often inadequate.

long-term disability cover
People aged 35 to 65 are more likely to become disabled than to die. So the primary wage earner must have disability insurance. Employees should have some basic coverage. Check if you’re covered; if it’s not enough, insure yourself through a private company.

Protect your Edgars account
The Edgars Account Protection Partner Plan settles the outstanding value of your Edgars account in the event of your partner/spouse’s death, permanent disability or retrenchment. The plan covers your partner for the full balance of your Edgars account up to R20 000 for a maximum of R24 per month.
Apply in-store or call 0860 11 24 42 for more information.

"Save money and money will save you"

- Proverb