The popularity of funeral covers in black communities would have you believe we are obsessed with “burying our loved ones with dignity”, when the reality is that most black people are playing catch up and are uninformed about what comprehensive financial planning entails.It takes financial planners years of study to understand product structures, their benefits, the markets they are designed for, the legislation and how to plan around them.
Experts stress that you also need to equip yourself with similar financial education when it comes to policies and investments, so you can make better insurance and investment choices.
People often think that a policy is something that would benefit them when they die, says Noma Shinga, a senior financial planner at Standard Bank. “They don’t consider the financial benefits that pay out while they’re still alive. This is because of a lack of understanding on the product or misinformation about financial products in general,” Shinga points out.