HAVING a Will, creating a trust and making sure that your family is taken care of should anything happen to you are very important when it comes to financial planning. So is making sure that your life, disability and critical illness covers are adequate, particularly if you do not have much to leave behind in assets.It’s easy to fall for a seemingly large-sounding amount of money, but don’t play guessing games when it comes to the amount of life cover you need. A figure of R1 000 000-00 might seem like a lot of money, but if you consider how much you spend monthly, you will realise that it might not be as large as you anticipated.Income and disability cover are important, because you never know when you might be unable to earn an income if you become temporarily or permanently disabled. When deciding on your cover, you will need to factor in how many dependants you have and the extent to which they will need financial assistance. Make sure you include provision for any dependants who have special needs. Some people are responsible for extended family members, such as parents. Include their needs in your financial planning. Take an honest look at your current level of household income. If you are unable to work, will your spouse or partner cope on their salary plus the income from your insurance payout? Debt and other investment obligations will also need to be provided for. Will your cover be sufficient to carry these expenses until they are paid off? If you are paying for a house or car, factor this in. Parents who have set up education policies for their children need to make provision for the monthly payments into these policies. It’s important that the cover you choose not only covers all your current expenses, but at the very least, keeps up with inflation, particularly if you are looking for long term cover. Being honest about your needs and financial situation will allow your financial planner to determine your risk level and therefore how much cover is enough. Think about what will happen in the immediate aftermath of your death. You should also review your cover whenever you make big financial decisions, when your lifestyle needs change or your salary increases substantially. Be careful not to sign up for any product that is put in front of you simply because it’s cheap or go for a higher premium because you think it covers everything. You need to do full financial needs analysis to make sure you are adequately insured. Sit down with your financial planner or adviser and go over all your monthly commitments thoroughly. Go through your budget and see the full extent of your commitments and make sure that you don’t over commit yourself. Parts of this article, is an excerpt from Sunday Times by Dineo Tsamela dated June 5, 2016 edition. Contact me on 083 399 3905, my office on 032-944 3051 or e-mail me on email@example.com for an appointment to discuss the above or any other financial planning. Disclaimer The information is only intended to be of a general nature and should not be relied upon by any part without obtaining full details from a licenced financial service provider.