Insurance South Africa
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.
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.
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.
South Africa is a leader in providing life insurance for people with HIV/AIDS. Thanks to the growing success of the treatment of this disease, South Africa is now one of two countries in the world where people with HIV/AIDS can purchase insurance cover.
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.
