Income First: Adulting – FMI Insurance

When you last met Patrick, he was what life insurer FMI (a Division of Bidvest Life Limited), calls an ‘Early Earner’: 25, a recently qualified electrician, no dependants and a new set of wheels to his name. He’s matured somewhat since then. At 32, he’s taken the leap to open his own electrical business and marry the girl of his dreams. Together, they’ve had a child and bought their first family home.

Patrick’s biggest challenge right now is to find balance. He’s looking for harmony between working hard and building his business, whilst spending time with his wife and being the family man he wants to be. He craves the opportunity to enjoy the small rewards life has to offer, while securing a comfortable financial future for himself, his family and the staff he supports in his business.

Patrick’s current life stage falls neatly into what FMI calls, ‘Adulting’: mid-30s, married with one or two children, and an average debt load that consists mainly of home and car loans. Their income is the fuel for their dependants, while they juggle building a career, buying a house and starting a family.

What are his risks? According to FMI’s 2019 Risk Stats, at 32, Pat has a 91% chance of at least one temporary injury or illness – but only a 37% chance of a critical illness and 15% chance of a permanent disability – during his working career*.

So what should Patrick’s top priority be? With a growing young family and a thriving business, he needs to protect his earning power so he can pursue what matters. Patrick worries about the effects any injury or illness would have on his family and his business. Not to mention the impact this would have on his employees and their families who depend on that income.

“In the Adulting life phase, you need to make sure you have the right cover in place, not just for yourself, but for your growing family too. And this needs to happen first, in addition to meeting your financial responsibilities, like your bond and your business, and continue to save as much as you can,” says Brad Toerien, FMI Chief Executive.

FMI wants to change the industry and help South Africans to perceive life insurance differently by starting with Income First:

1. Insure yourself against your most likely risks (injury, illness and critical illnesses) that could prevent you from earning an income – both for a short while, as well as for an extended period of time.
2. Cover yourself with income replacement benefits, as opposed to large lump sums.

This Income First approach offers tailored product solutions to meet your needs and offers premium savings in comparison to lump sum only benefits.

“The important thing to remember is that no matter what stage of life you’re in, your income is the one constant you’ll always need to rely on. For people in their mid 30s, this means protecting 100% of your income against temporary or long-term injury, illness and death, and using lump sum benefits to provide for any additional expenses,” says Toerien.

Your income is more than just the money you earn. It provides for the things you need today and holds the futures of those close to you. It’s what you use to make an impact at each stage of your life – both for your family and the people who depend on you.

*Risk stats calculated for 32-year-old before retirement age of 70.

ADULTING IS LESS CHALLENGING WHEN YOUR FUTURE INCOME IS PROTECTED

Calculate your future earning potential using FMI’s Future Income Calculator:
https://fmi.co.za

Take the FMI Reality Check Quiz to find out your risk reality:
https://risk-reality-calculator.fmi.co.za/

ABOUT FMI

FMI, a Division of Bidvest Life Limited, offers a suite of life insurance products to protect individuals against any of life’s risks. FMI specialises in monthly income benefits that protect people’s livelihoods when they’re unable to earn an income due to an illness, injury or death.

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