In South Africa, the purchase of insurance cover is often the choice of the consumer. And, given the choice, many South Africans opt not to purchase insurance cover ” a decision that can be financially devastating.
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.
A good number of South Africans do not take advantage of all their insurance options, with life insurance being the leader. While many of us know that decreasing term life insurance is linked to things like home loans, it can provide more for you then paying off debt. Life insurance can maintain the standard of living for your family in the event of your passing by providing your beneficiary the payout of the policy. Obtaining the proper life insurance will ensure your family has security.
Among the two countries in the world who provide life insurance for the HIV/AIDS infected people, South Africa is in the lead. Because of the success of the treament of AIDS, it is now possible to purchase insurance among those who are infected in South Africa.
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.
For Home owners, you are most likely to have the homeowners insurance cover. But, if you lease, consider renters insurance which protects your belongings in case of theft, fire and other property damage. You can also add voluntary excess amounts and security devices to lower your premiums for these policies. For Homeowners, whatever the case, do not include the value of your land during estimation of your homes value. The land will still be there no matter what happens to your home.
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: car insurance, Cars, Household, Household Insurance, Insurance, Money, Short Term Insurance
