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.
Financial institutions can teach us much in relation to the importance of insurance. Banks normally ask for motor vehicle insurance before they grant your car loan. They also demand homeowners insurance and at times even life insurance before approving a home loan. This shields the banks from incurring losses in case your property is lost, stolen, or destroyed or if you happen to die. You are also covered because your insurance will help to compensate the bank if you ever happen to be in the above named situations.
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.
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.
You might think that insurance is an unnecessary expense. It may seem so, but what would you do if you had to pay to have your or another person's car replaced following an accident? Just think about how hard it would be for your family to get by if you were to die suddenly. This type of thing happens to people every day, but you and your family don't have to be among them. Don't wait any longer, start looking for the insurance you and your family need to be safe.
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.
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