By: FMIHe's 25 and just qualified as an electrician. He has landed his first job and bought his first set of wheels. Life has never been sweeter! Pat's ticked off the responsible stuff by insuring his car and covering his health with a basic medical aid plan. And because he’s still living at home, he can spend most of his salary enjoying life. At his father’s urging, Patrick has decided to speak to an independent financial adviser to look at his financial planning. Given his age, what should Patrick be prioritising right now? Patrick falls neatly into what life insurer FMI (a division of Bidvest Life Ltd) calls ‘Early Earners’: mid-20s, single with no dependants, and little to no debt. What are his financial needs, and what risks does he face? According to FMI’s 2019 Risk Stats, a 25-year-old male has a 92% chance of having a temporary injury or illness during their working career, a 37% chance of a critical illness, and a 15% chance of a permanent disability. For Early Earners, whose entire future earnings lie ahead of them, protecting this earning potential against life's risks has never been more important. “AN EARLY EARNER HAS 2 MAIN PRIORITIES: PROTECT THE INCOME THAT PROVIDES FOR THEIR LIFESTYLE TODAY, WHILE ALSO PROTECTING TOMORROW’S BIG PLANS,” EXPLAINS FMI CHIEF EXECUTIVE, BRAD TOERIEN. Client Care : 086 010 1119 | For more information visit: www.fmi.co.za FMI is a Division of Bidvest Life Ltd, a licensed Life Insurance Company and authorised Financial Services Provider FSP 47801 Patrick’s needs are clear: protect 100% of his hard-earned monthly income against life’s risks that can trip him up during his working career – getting injured, falling ill, or being diagnosed with a critical illness. Unfortunately, most South Africans get their priorities mixed up when it comes to insurance. What many fail to realise is that of all risks, temporary disability is the most likely risk that can prevent you from earning your income, and this is true despite the life stage you’re in. This means that without dependants (yet!), Patrick has no need for death cover – despite industry norms that default to providing Early Earners with life lump sum cover. "The important thing to remember is that no matter what stage of life your clients are in, their income is the one constant they’ll always need to rely on," says Toerien. Your client's income is more than just the money they earn. It provides for the things they need today and holds the futures of those close to them. It’s what your clients’ use to make an impact at each stage of their lives; whether it's starting a business, educating your children or taking your loved ones on a memorable holiday. “As a financial adviser, it all begins with you. You have the ability to translate your client’s vision into a financial plan that gives them the confidence to go out and live their lives, and to make their impact. We’re calling on all financial advisers to be a part of the new standard for life insurance, the Income First way,” says Toerien. Join us as we continue taking you through our understanding of customers’ needs and mindset, at every stage of their life, so that we can offer them the best possible solution to suit their individual needs. To find out how to provide an irreplaceable policy and help customers like Patrick, visit: https://risk-reality-calculator.fmi.co.za/