Don’t Wait Until Disaster Strikes Before Considering Short-term Insurance

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Whether or not we want to admit it, South Africans have a special need for short-term insurance products. Between the crime, the road rage, the fires and the floods, our homes and vehicles are at more risk than those of the residents of many other countries. Add to this our nation’s seemingly perpetual economic turmoil, and you have a worry-rich environment in which the standard uncertainties of modern life are magnified.

Unfortunately, many of us recoil at the sight of the price tag attached to short-term insurance policies. Given the fluctuating value of the rand, this reticence is understandable, but the catch is that not having our assets covered could well cost us a lot more in the long run than insurance companies are charging for their premiums.

Not only this, but the cost to replace and repair damaged, lost or stolen assets could be crippling, both due to the unexpected nature of disasters (both natural and not) and because you could be losing a lot more than you can afford to replace in a single event.

Think about it; in one unexpected disaster, you could lose a lifetime’s worth of accumulated valuables.

If it took you twenty years to fill your house with the possessions and trinkets that make it a home, you’re going to struggle to fill the gap if you lose it all overnight. Likewise, with our unreliable public transport system, you can’t afford to be without your car – but you might struggle finding a way to replace a wrecked or stolen car if you’re still paying off the uninsured on that you no longer have.

Insurance premiums don’t sound quite so daunting to manage, when compared to doubling up on monthly car payments and having to pay for a vehicle that no longer does anything for you.

At the end of the day, the best car, home or business insurance companies will work with you, taking the time to understand your budget and needs, in order to offer you the most affordable cover possible, to accommodate your risk context and financial limitations.

While no one wants to worry about the extra expense of monthly premiums, the point we’re making (and it’s an important one to make in the relatively uninsured South African environment) is that that extra expense is one you’ll wish you had found a way to cover, if or when disaster strikes and your life is completely derailed by unexpected expenses that can, oftentimes, be beyond your means to meet.

Considering all of this, it should be clear that it is in your best interests to take a bit of time, use resources like this blog, and make a plan to cover all of the valuable assets that enable you and your family to live the lives you’ve worked hard to build.