As the new year unfolds, many people find themselves facing the financial aftermath of holiday expenses and contemplating resolutions for a more secure future.
Overspending during the festive season has led many to increased credit card debt and depleted savings, necessitating the re-evaluation of financial priorities.
Unforeseen expenses, such as home repairs or healthcare emergencies, can put further strain on budgets.
To mitigate the impact of unexpected circumstances, incorporating policies such as health insurance, car insurance and home insurance at the beginning of the year, is crucial.
These policies serve as financial safeguards, offering protection and peace of mind in the face of life’s uncertainties.
It is imperative to consider not only one’s own needs but also the well-being of those you hold dear.
Life cover stands out as a cornerstone of financial planning, providing protection for loved ones in the event of the policyholder’s death.
Yaaseen Albertyn, Metropolitan’s product management head, has emphasised the significance of including a life cover policy in your New Year’s resolutions for this year.
Beyond financial security, he said, in times of death, disability, or illness, life cover serves as a crucial financial safety net, ensuring the well-being of your loved ones by covering
expenses and sustaining their quality of life.
“Without life cover, your loved ones might struggle to cover mortgage payments, school fees, or daily expenses. Life cover ensures that these financial commitments do not add to the emotional distress your family might already be facing.”
While reviewing your insurance policies is as necessary as brushing your teeth in the morning, it can be a formidable task. It entails navigating through dense and often complex legal language, requiring a meticulous examination of intricate details that can be overwhelming for many who are not well-versed. It demands both time and careful consideration.
Wynand van Vuuren, the client experience partner at King Price, emphasised the importance of annual insurance reviews for peace of mind, offering key suggestions to ensure comprehensive coverage that addresses risks, even within a tight budget.
“Some people struggle to find the time or assume that once a policy is in place, there is little need for further scrutiny. Others only read their insurance documents for the first time when they want to check whether a claim may be valid. But the bottom line is that reviewing your cover, at least annually, will give you peace of mind that your car, home, and belongings are fully protected, at the best possible premium,” Van Vuuren said.
- Consolidate policies for cost savings: Bundle all your insurance policies with a single insurer to yield significant cost savings.
“Insurers love clients who have more than one policy with them. So, if you cover your buildings, home contents and a car, for example, you will probably pay less. You could also be eligible for a discount if you insure multiple cars – up to 20%, in some cases,” Van Vuuren advised.
- Enhance security measures for lower premiums: Enhancing security measures, such as installing tracking devices for your car/s and implementing safeguards like electric fences and alarm systems, may qualify you for lower monthly insurance premiums. “If you live in a secure estate, check whether there’s a home contents option that excludes theft but still covers you for things like acts of nature and malicious damage.”
- Keep details updated for personalised coverage: Inform your insurer of any changes in your personal circumstances, as these can impact your premium. Updates should include changes in parking locations for your car, alterations in your driving frequency, and changes in
marital status. - Review coverage relevance regularly: Regularly check your policy schedule to ensure you are not insuring items you no longer own. Simultaneously, be diligent about adding new high-value items to your coverage. Verify that coverage for buildings, home contents, and portable possessions reflects their current replacement value.
Remember, building a secure financial future starts by making informed decisions and conducting annual reviews to ensure that your insurance coverage adapts to your changing needs.
