Last reviewed: June 2026. We review our guides regularly to keep them accurate.
Written by Zelda Mulder, CFP®
When considering portfolio diversification, there are 7 factors to keep in mind. Normally when we talk about diversifying your portfolio, we refer to your investment portfolio. This is used to mitigate investment risk. However, we need to apply this thinking to our entire financial portfolio. Every decision, action consequence has a financial affect, and we need to minimise the risk on your financial security.
7 factors to consider for portfolio diversification
Medical Aid
Medical aid covers members’ healthcare costs such as hospitalisation, treatments, and medicine. These costs are covered according to the rules of the medical scheme and the member’s medical aid plan type. If you do not have the capital to fund high cost of medical care in the private sector, the only way to do this is to make use of medical scheme benefits.
Gap cover
Gap cover is a short-term insurance product designed to provide extra protection for those who already have medical aid. It covers the deficit between your medical scheme’s tariff (MST) and the actual rates charged by private healthcare professionals in hospital. Medical aid is what it says, it is the aid to the cost of care and Gap cover can complete this process.
Income Protector
Income protection is a long-term insurance policy that replaces or supplements your income if you get a critical illness or become disabled so that you cannot earn a living for a while, or permanently. Income protection is a safety net during difficult time. It can assist to secure your ability to still pay for your medical aid and gap cover when you need it most.
Severe Illness
Severe illness cover pays you a lump sum on diagnosis of a serious illness, such as cancer or a heart attack. The benefit is designed to help you pay for the costs well beyond medical expenses that can arise when living with such an illness. This can include the cost to follow a special diet, transport cost to get to the hospital for treatment, etc.
Disability
Capital Disability Benefit offers cover that ensures the financial security of your family with a lump-sum payout if you become disabled. This can be used for lifestyle adjustments such as changing doorways for a wheelchair, caregivers, etc.
Short-term Insurance
Short-term Insurance offers protection of your asset against unforeseen losses. Storms, accidents and thefts can cost thousands in financial losses and with comprehensive insurance revisions we assist while considering your immediate affordability to ensure that excesses and contributions are also in line with what you can afford.
Estate Planning
This is to structure your assets and finances in a manner to ensure sufficient liquidity in your estate and to ensure that you family can continue with the lifestyle that they are accustomed to.
Diversifying your financial portfolio extends beyond investments. These seven elements are essential for holistic financial security. By addressing each of them, you can minimize risk and protect your financial well-being. When you’ve considered all these elements, you’ve truly diversified your entire portfolio, ensuring a robust financial future.
We’re taking the time to highlight the importance of portfolio diversification during Heritage Month as we believe that just as South Africa’s diversity is a source of strength, a diversified portfolio is a source of financial resilience. During this Heritage Month, let’s embrace the rich tapestry of our nation and apply the same principle to our finances, ensuring that we’re well-prepared for whatever the future may bring.
For personalised advice on diversifying your financial portfolio and securing your future, visit the Curemed website today.
Disclaimer: Terms and Conditions apply. This blogpost and the information contained within it is intended for information and consumption purposes only and does not by any means supersede the Rules of the Scheme. In the event of any discrepancy between this mailer and the Rules of the Scheme, the Rules of the Scheme will prevail. Curemed is a licensed financial service provider with the FSCA, FSP 44098.
