Life is full of unexpected mishaps: burst geysers, leaking roofs, someone bumping your car in the parking lot, losing your luggage at the airport, sudden heart attacks... The list of things that can and will go wrong every day is endless. And so are the costs associated with all of these nasty surprises.
From sourcing knowledgeable technicians that charge high hourly rates for consultations and labour, to finding the right parts at the hardware store, trying to fix problems by yourself can be extremely time consuming and costly. This is even more of a nightmare if you don't have specific knowledge of the industry; it's so easy to get ripped off!
While you can't prevent life from happening, you can prepare for it by taking out insurance policies. Insurance policies or insurance products are offered by financial institutions to help ease financial uncertainty, and protect you and your loved ones from excessive accidental loss, theft and damages.
Getting started with finding the right insurance policy to suit your needs can be tricky. You have to contact different financial institutions and get a quote. You need to compare coverage, monthly premiums, excess payments, conditions for claims, probability of increases etc.
Here at BudgetGist we know that picking out an insurance policy seems very complicated. That's why we pride ourselves on being South Africa's information hub for all things related to finance and money.
Insurance products are unique in that they are tailored to your situation. This means that a licensed professional will assess your car, home, or lifestyle and create an insurance contract specifically for you. This will include determining how much of a risk you pose to the company, how often you might need to claim on the insurance, and the potential value of repairs, reimbursement, or other bills.
With hijackings, smash and grabs, and break-ins on the rise, car insurance is more important than ever. Car insurance is also vital in the event of an accident or breakdown. If you have caused an accident that has resulted in other people being injured or their property being destroyed, your insurance can reduce your responsibility by covering the costs for you. Your insurance company will make the necessary assessments, and payout to the victim or their insurance company to repair the damages.
The only thing that is certain in life is death. Whether you die from an expected accident or through natural causes, the cost of a funeral in South Africa can be exorbitant. This is especially true in the advent of the pandemic; the extra precautions mean extra costs! Depending on the institution, your funeral cover may pay out a lump sum in the event of your death or may allocate funds towards certain costs like the burial, headstone, buying groceries etc.
Maintaining a home is a huge responsibility. Having home insurance is a worthwhile investment in ensuring that any theft, damage or malfunctioning applications are swiftly taken care of. Some home insurance contracts may provide cover for the contents of your home to safeguard against theft and damage. In the event of damage or a malfunctioning application, such as your geyser, you can rest assured that you do not have to shop around for quotes from technicians and repairmen. Your insurance company will likely advise you of qualified tradesmen in your area or send over an affiliated tradesman as soon as possible. This reduces your out of pocket costs and overall stress.
In the event of your death, you would want your loved ones to be taken care of financially. Life insurance policies require you to make monthly contributions during your lifetime and elect a beneficiary. When you pass on, your beneficiary will be entitled to the value of your life insurance policy. Not only does this reduce the impact of losing your income and contributions to the household, but the lump sum may allow your loved ones to pay off any debts or continue their education. This is the peace of mind that money can buy!
Having medical insurance means that you will receive a lump sum of money to put towards medical expenses, such as hospital bills, physiotherapy bills, and medical devices. Some insurances may pay a set amount per day that you are hospitalized, so you should budget for this. Medical insurance can cost less than medical aid, and can be used to cover expenses that your medical aid will not pay for.
It doesn't matter if you're jet setting to Paris or flying down to Cape Town for the holidays; travelling is already so expensive! Making once in a lifetime memories with your loved ones can be worth having to save up for accommodation, transportation, visas, and the cost of visiting tourist attractions. Losing your luggage, missing your flights or having your possessions stolen can mar the whole trip. Luckily, travel insurance provides cover for all of these unfortunate events so you can continue making happy memories.
Before beginning the application process, take a moment to do some background reading on your chosen insurance company. Talk to friends, family, neighbours and co-workers about their experiences with the insurance company. You don't want to be stuck paying an exorbitant insurance premium only to have your claims rejected based on loopholes in the contract.
Additionally, make sure that the institution and insurance agreement is legitimate before proceeding. Take note of your premium, the factors that will increase your premium, additional fees, the claims process, and the extent of your cover. Ask your broker to explain anything that you do not understand before signing the contract, and make sure you are fully satisfied with the terms and conditions.
Get a quote from two or three insurance companies before making your final decision. At the end of the day, your insurance should not be an excessive financial burden on you every month, and it should provide all the cover you would need in the event of an emergency.
There are additional fees that you should be aware of before jumping in. When submitting a claim, you may be required to pay an excess fee. This amount is declared when your insurer offers you an insurance product or renews the contract, and this goes towards making any repairs and payments. It's important to note that you should be comfortable with paying your excess as you may not have your claim paid out without it.
When death and disaster can strike at any time, it's crucial to be prepared for the worst. Having insurance can give you peace of mind that you and your loved one's can go about your daily lives uninterrupted. It may seem like an unnecessary monthly expense to some people, but having insurance can mean that accidents and other mishaps won't have you piling on debt.
The process of finding the right insurer can be daunting, be it for home, car or life insurance. Making a responsible decision now can improve your quality of life in the future by ten folds. No matter the financial emergency, BudgetGist is here to help! We are South Africa's information hub for all things related to finance and money.
The process of taking out an insurance policy usually involves contacting an insurer for a quote, signing a contract, and paying monthly premiums. Your contract and premiums are usually tailored to your risk profile, which takes into account demographic and personal information such as your age, experience, previous claims or incidents, and information regarding your […]
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