So you have managed to secure that big job you have been after. If you are a Botswana Life policyholder and were paying your insurance premiums through your previous employer as a salary deduction, to ensure that your policy remains in force and that you continue to receive benefits, you need to change your pay method. If your new employer is a Botswana Life paypoint, please complete the new employee stop order form and submit it to your nearest Botswana Life office. For a list of Botswana Life paypoints, please contact us.
Whether or not you are an existing policyholder, this is a good opportunity to review your financial position. Does your new employer have a pension fund and are you a member of that pension fund? Are the contributions that are being made into the pension fund sufficient to finance your retirement needs? If you answered ‘no’ to any of the previous questions, then you should purchase either a Mompati Retirement Annuity or an Offshore Retirement Annuity to secure your retirement.
If you were given a pay-out from your previous employer’s pension fund or given a gratuity payment, then you can purchase a Single Premium Retirement Annuity to preserve your funds for when you really need them. If you have an existing retirement annuity with Botswana Life, then you can put the lump sum in the existing policy.
Your family is about to start getting used to a higher standard of living because of your new higher salary. You should, therefore, also adjust your life insurance cover to ensure that they retain this higher standard of living in the event that you are no longer able to earn this salary. You can consider one of the following products: Motlhokomedi Life Cover, Professional Term Assurance, Mompati with Life Cover and Offshore Gold with Life Cover. If you already have any of these products, then you can just increase the sum assured.
Taking out life cover for the benefit of your spouse and/or children is a wise investment on your part, as the proceeds will be paid directly to these beneficiaries without the need to wait for your estate to be settled by your Executor or the High Court. These benefits can’t be forfeited to pay for any outstanding debts at the time of your death as per current insurance legislation.
If you haven’t started investing already, then this is a good time to start with your new additional income. The following products will be good investment vehicles: Mompati Universal Life and Offshore Gold. If you already have an investment policy, then you should consider increasing the premiums on these existing policies.