Insurance is not required by law in South Africa. Given this fact, most South Africans choose to save a little bit of money and go without the insurance. In the long run, however, this has proven to be a very costly mistake.
We can learn a lot from financial institutions in regard to the importance of insurance.. Banks will very often require car insurance before approving your auto loan. Banks also require homeowners insurance and sometimes life insurance before approving a home loan. Doing so protects the bank from financial losses in the event your property is lost, stolen or damaged or in the event of your death. You are also protected since insurance cover will provide you the means to pay the bank under these circumstances.
Armed with this knowledge, wouldn’t it then make sens to protect your assets, even if the bank doesn’t require you to? The decision to not obtain insurance coverage for your assets is a big one. Take a look at these common types of insurance and see if any of them would be of interest to you.
Life insurance is the most underutilized insurance options for many South Africans. Most of us are familiar with decreasing term life insurance that is linked to specific debt such as our home loans. But life insurance can do more than pay off debt. Life insurance payouts can ensure that your family will be able to maintain its lifestyle in the event of your death. The right whole life insurance policy will provide you and your family this peace of mind.
As a leader in providing excellent life and medical insurance for people suffering from HIV/AIDS, South Africa is now one of only 2 countries in the world where HIV/AIDS patience can purchase medical coverage through there insurance company, thanks to the escalating success rate of the treatment of this particular disease.
When it comes to car insurance, South Africa does not require divers to purchase car insurance to drive, and approximately 65 percent of auto owners do not have any coverage. But one hard look at the risks you take when you drive will convince a responsible driver of the necessity of car insurance cover. Accidents, hijackings and thefts occur every day. If you cannot afford to pay out of your own pocket to repair or replace damaged property, medical expenses or property damage caused by theft or fire, you should have car insurance. A Comprehensive Cover policy will protect you in all of these situations.
If you are a houseowner you most likely have homeowner’s insurance.But if you are a tenant,you should think about renter’s insurance to safeguard your property in the time of fire, theft or other disaster caused to your belongings.To lessen your premiums for these policies, you may add voluntary surplus money and add safeguard devices.for houseowners, should not add the value of the land your house is existing on when you calculate your house’s value.No matter what happens to your home, the place will be there.
At first glance, insurance may seem like an unnecessary expense. But imagine having to pay to replace your car or someone elses after an accident. Or, imagine your family struggling to make ends meet if you die unexpectedly. Situations like these happen everyday, but they dont have to happen to you or your family. Start shopping today for the insurance cover you need to protect you and your family.
Knowing this, doesnt it make sense to protect yourself without the bank requiring you to do it? If youve made the choice not to insure your property, or yourself, take a moment to review the most common types of insurance and their benefits.
Tom Martens is the syndication coordinator Insurance-south-africa.co.za. South Aricas leading Insurance information portal.
Tags: auto insurance, car insurance, cars, Household, household insurance, insurance, money, Short Term Insurance