You can never be too prepared. In fact, it’s always better to be overprepared than to be stranded with no plan. Having insurance provides a sense of security and cushion for those moments in life that happen unexpectedly. However, you also need to know what you’re getting yourself into when you sign up for insurance.
Why do you need insurance?
It’s scary to come to terms with, but the reality is that we don’t have complete control of what happens in life. Your car is wrecked in an accident; you or a dependant are suddenly faced with a health crisis; you, the breadwinner, dies … That’s why insurance is essential; it’s about you and your loved ones having protection. It’s preparation for any unforeseen events. While it may not feel like it when you’re paying the insurance premiums, having this kind of assurance will do you a great deal of good, especially in the event of something unfortunate happening.
Things that require insurance
We understand, dealing with insurance matters for the first time – and in general! – can be overwhelming. You’ll want to start with the basics, which are about knowing what actually needs cover.
- Car insurance – covers you for loss of a car due to theft or damage
- Salary protection – covers you for unexpected loss of household income
- Life insurance – covers you for loss of income due to the passing of the main breadwinner
- Life insurance – covers you for heavy debt that may not be payable by the debtor
- Life insurance with disability cover – covers you when the breadwinner is unable to work due to critical illness or an accident
Budget Insurance offers a number of insurance products. If you need more information on these products, reach out to one of the sales representatives.
Choosing the right insurance cover
There are things to take into consideration when you’re choosing the cover that suits you. Ultimately, you’re looking for insurance that will meet your needs, so you can’t have a general approach to the insurance you choose. It has to be specific to you. These are some of the things to be mindful of when making a decision on the right cover for you:
- Carefully consider your needs: give thought to the number of dependants you have and their needs, e.g. education. Take into account the kind of lifestyle you lead and your personal needs in the present and future.
- Look at the costs involved: compare a number of the same type of insurance products before settling on one. Ideally, you want to go for the one that gives you the best cover, but is also affordable.
- Don’t overlook the claim settlement ratio. Dependants sometimes run into difficulties with insurers when claiming a payout. Being aware of the claim settlement ratio (the percentage) of an insurer gives you an indication of their reliability. The higher the ratio, the more dependable the insurance company.
- Don’t go overboard. Don’t buy policies that will not serve your personal needs. Choose only what you need.
- Relook your insurance needs. Assess your needs to see whether they have changed, then relook your policies. You may find that policies that were relevant when you were a single adult don’t apply to you now that you’re married and a parent.
With a better understanding of the importance of insurance, we hope you are confident about finding the cover that caters to your needs.
Budget Insurance is an authorised insurer and financial services provider. Terms and conditions online.