Income first, the new normal

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Life Insurance podcast series Episode 2

COVER will, over a number of episodes, be chatting about certain aspects of Life Insurance as part of a Life Insurance Podcast series in partnership with FMI.

In this podcast series, COVER's Tony van Niekerk will be chatting with Mapalo Makhu, author, award-winning personal finance coach, speaker and founder of the Woman & Finance platform and Brad Toerien, former CEO of life insurer FMI.

In our previous episode, we looked briefly at the insurance gap – the fact that many South Africans are under-insured. And if we’re going to close that gap, we’ve first got to close the trust gap between consumers, advisers and the industry as a whole.

Today, we’re talking about the concept of income protection, which remains a significantly under-used tool in the average South African portfolio.

Tony started off the episode by asking Brad if he could tell us about FMI’s approach to income protection, and why they chose this route.

He then went on to ask Mapalo for her view on an income-first approach? What are the advantages for consumers of this and what questions should consumers be asking their advisers?

Brad then spoke to us about some of the advantages to customers and advisers of the Income First approach and how one can get advisers and their customers to change their habits that have been built over a lifetime?

In his final point of the discussion Brad said that he would love to get to a point where Income protection is the starting point of Life Insurance conversations, as many young people who are debt free and have no dependants are put off by the idea of needing life cover. By starting the life insurance conversation with, how do we protect your Income, we are more likely to have a positive result.