INSURANCE COVERS: WHAT YOU NEED TO KNOW AND HOW TO SAVE ON INSURANCE
While South Africans are grappling with high levels of crime, disasters such as the one that hit the province of KwaZulu-Natal this year and not discounting the violent looting sprees, it should always be a wise move to have insurance for different needs.
Apart from covering your assets such as a car or house to furniture and electronic devices or appliances, it is also wise to purchase a funeral cover as they say, ‘life is unpredictable and too short’.
Entertainment SA takes a look at various insurance covers available in the South African market as well as the most frequently asked questions regarding the right choice and a reliable insurance provider.
There is no doubt that there are many companies that have entered the insurance space and we can mention plenty including those products offered by major financial institutions such as banks.
While many insurance companies do offer good deals or value for your money covers, many would relate to not paying attention to familiarising themselves with the terms and conditions involving the waiting period and so on.
FAQs – Frequently asked questions on insurance:
Be it missing your monthly premium or coming to a decision to cancel, some clients frequently get involved in battles with insurance providers – and that boils down to ignorance or lack of knowledge. It is always advisable to ask your insurance provider a number of questions. We select a few below:
Can my age affect my premium?
Why does my premium increase every year even though the value of my car depreciates?
Is it true that my marital status can affect my premium?
If I cannot afford my premium this month, can I pay double next month?
Can I insure two separate addresses on one policy?
What do I need to do to cancel my policy?
What factors are taken into account in determining what premium I pay?
What is an excess?
Why do I need to install a tracking device in my vehicle?
How long is the waiting period?
How to save on Insurance:
As mentioned in this article, there are plenty of insurance providers in South Africa and the best way to save is to compare quotes prior to taking a major step in committing yourself. Besides searching for a lower quote, it is advisable to possibly combine all your insurance policies or covers under one company. For example, one might look for a certain provider for a car, then choose a different one for his or her house and another one for a funeral cover. South African clients might be aware that major banks and insurance companies have now introduced a wide range of products under one roof. The best thing is to just call them or consult your financial advisor.
For example, combining your vehicle and home contents cover could help you save on your monthly premium. While there are many smaller insurance providers that only offer niche products, such as only vehicles, insuring with a larger company that can meet all your insurance needs is a good idea.
How to compare funeral covers:
Companies such as Hippo, Like Money, and Compare Guru are some of the best choices or websites one can be able to visit before taking a decision to settle down with one product that cannot offer the best service or meet your expectations.
When you compare funeral cover providers, you must always look at the amount or number of extended family members you can include in your plan. Most funeral cover providers will offer the following members cover such as spouse (wife, husband, or partner), children, grandparents and parents in la, aunts, etc. The age (s) of your parents or granparenst are also worth considering because they vary from provider to provider.
How many funeral covers one should have:
The first thing you must ask yourself is: why do you need a funeral cover, the answer is none other than having a decent funeral for you or your loved one. So, it’s always imperial to avoid having many because you will be subjected to paying more in admin fees. It is cheaper to insure yourself adequately on one policy and only pay one admin fee.
Words you should know about your funeral cover:
There are terms and conditions for any insurance policy and a funeral cover is not an exception. For example, you should know when your cover pays out your claim because many may promise to pay in less than 24 hours and sometimes fail to do so. You also need to know how many people you can cover and at what age. It is prevalent to find people buying a life cover and confuse it to be a funeral policy and a battle might ensue when it’s time to claim a pay-out. In addition, it is best to enquire from your provider: what does their funeral policy cover, this is because it is different when you purchase one from a funeral parlour and one from companies such as AVBOB. With the one at Sanlam or AVBOB, one has the advantage of benefits such as transportation to the burial location, provision of transport to prepare for the funeral and grocery or education benefits.
Suggested Topics:
To wrap it up, it is worth mentioning that these are some of the topics people search for when they need a funeral, life, and car insurance cover. Some of the topics people research are: Can I take out more than one policy, would I downgrade should I fail to afford my premiums, and will I be able to claim if I cancel my policy, etc.
Life Cover:
With a life cover, there are terms such as a cooling-off period and which is a window period designed to protect you. However, you still need to probe and consult a financial advisor because you will also need to research about what is the process of adding or removing beneficiaries, what will I be covered for because there are exceptions when participating in riots, committing suicide within 24 hours after buying the cover as well as travelling to high-risk countries.
Car Insurance:
In terms of buying car insurance, one has to look at the value and age of the car, storage of the car and the location you reside in including secondary drivers, etc. On top of these pointers, you still have to take time out and familiarise yourself with the fine print.
Understanding lower excess and lower premium is also crucial. It’s important because if you have a sum of money saved up, it may be worth opting for a lower premium and a more expensive excess. In the unfortunate event of a road incident, you will then be able to afford the necessary fee, even if it is higher than normal.
For more information visit: https://insurancecovers.co.za/#
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