Find out how the major types of insurance in South Africa and how to decide what insurance you need. Being insured simply means you have got your risks managed and will be provided financial compensation in the event of a loss or an accident. Risks, in this case, differ. There are personal risks, liability risks, car risks, property risks and so on. A risk that is more relatable to you gives an insight into the right type of insurance you need. For instance, a student who does not have a car or property may not seek to restore these valuables in an insurance company but will seek student packages applicable to him or her.
There is a vast range of insurance packages for different purposes in South Africa, the five major ones will be listed here. In South Africa, there are insurance packages that are mandatory while others are not. There is a lying need by the system to ensure the protection of life and valuables are considered to a certain level, hence, certain types of insurance are compulsory.
Here is a list of five insurance types every South African should know:
This insurance gives a financial payment to one’s beneficiary upon one’s death. I am sure you must have heard of that rich family man or family woman who died suddenly but left his or her family without a silver spoon. The tears of regrets were shed by the living because of a decision that was not carried out. When one buys a life insurance policy, you have the ability to name a beneficiary (a person or persons) who will receive the payment. The insurance company pays the amount of the insurance made to the beneficiary after one’s death. Though death is not a tasteful topic to speak on, planning for the what-ifs will help to save those who depend on you from the already deadening economic dilemma.
Unlike most countries where car insurance is mandatory, it does not so in South Africa because of the mandatory road accident fund gotten from the government. Car insurance packages provide drivers a coverage in the event of an accident or injury. There are also private insurers that provide wider coverage of risks that might occur. The comprehensive insurance, for instance, covers the costs of car repair or replacement of cars due to losses such as theft, vandalism, and fire. Either it’s on the owner’s car or the third party, good car insurance bears the cost of repairing your vehicle or replacing your vehicle if serious damage occurs. It is therefore important to take out insurance to protect yourself should an event of loss happens.
Owning property is a major investment and should not be taken lightly because of the financial requirements it requires in the event of any form of damage, either theft, fire or other disasters. A good number of people can not afford to repair let alone replace a building if disasters occur. Such events are never planned to happen when it does happen, the scenes of ‘I am sorry for your loss’ will keep occurring but its inability to build back the house will build the sad scar. This is where property insurance comes in, it has the ability to cover the costs and lessening the effect of a loss. Most property insurance packages cover for damage for the loss of house or property, property in the sense of personal valuable possessions stolen or damaged. It may also include damage or injury on others or your neighbour’s property if it concerns your building. With the high rate of vandalism and theft in South Africa, it is important to take out the coverage that will keep your finances secured.
Being healthy is a gift that should be cherished and preserved. Preserving one’s health involves foreseeing health challenges that may occur and preparing to cover the costs for health. Health insurance in South Africa involves paying for some or all of your health care costs in exchange for a premium. A good health insurance plan covers basic medical care as well as other costs of hospitalization. It is important to purchase one that will covers the costs related to you. Before purchasing one, you must check to ensure you do not have one already as many employers of labour offer insurance benefits.
Travel insurance offers travel protection a person needs. It covers medical expenses, trip cancellation, lost luggage, flight accident and other losses incurred while traveling, either internationally or domestically. Note that there is a good number of travel insurance companies in South Africa which gives you the ability to shop properly, research and come with the best option. The travel insurance premiums are usually affected by certain factors such as the purpose of travel, current health standing, the duration of travel as well as your age. Most policies are flexible, you can check the policy that is suitable to you either you’re traveling alone or with a family.
These are the five insurance types every South African should know, contact us for more insurance tips.