Are you thinking of renewing your insurance policies or signing a new one? Maybe, don’t do it just yet, first check our advice and see if you know what you are really signing up for.
As an adult, there are some insurance policies that you don’t want to be caught without but before you sign up or renew them, be sure they’re good value or even necessary. We’ve made the decision a little easy and have checked out the details for you…
It’s expensive – a typical monthly family premium (two adults and two kids) ranges from about R2 860 to more than R8 000. It’s important to know what’s covered and that your basic needs will be met, or you might end up paying a fortune for both co-payments and a plan that doesn’t benefit you.
Re-evaluate your plan as your kids grow older, and if money is tight and your family is generally healthy, consider a hospital plan, which will cover you for most medical emergencies. Choosing healthcare providers pre-approved by your medical aid will also help you save.
Watch out for: Cheap plans may cover much less than what you need.
Think about whether or not you really need it. If you have dependants, the answer is yes. If you don’t, consider saving that money every month. Also, bear in mind that some employers have generous life annuities that you could consider.
Watch out for: Very cheap quotes are usually based on the lowest payout possible, so read the fine print!
If you can’t afford to lose or replace the contents of your home, you’ll find it’s worth it.
Watch out for: If you claim, you may need receipts or quotes for valuable items. Specify anything that would cost a bundle to replace, such as electronics and heirlooms.
Worth the call: OUTsurance offers portable possession insurance called OUT-and-about. It covers items you take out of your home, like cameras and phones (it’s usually cheaper to add this to your home contents insurance).
Thanks to good nutrition and care, our pets are living longer. But it also means they’re open to diseases associated with old age – costing a fortune in vet bills. Try onepet.co.za from R262 per month per pet, it’s definitely worth it.
Watch out for: Most policies don’t pay for any expenses associated with pre-existing conditions.
If you own your home, it’s a must. But don’t take out insurance with your home loan provider without first getting other quotes. Joint building and home contents insurance tend to be cheaper. You don’t want to be caught without household insurance in case of a natural disaster, or a burst water pipe flooding all over your new laminate flooring.
Watch out for: Check the excess – it’s the amount you pay before the insurance company pays up.
Even if you have enough in the bank to repair your own car, you should consider third-party insurance – after all, if you’re in an accident, could you afford to pay for a Ferrari to be fixed?
Watch out for: Loyalty doesn’t pay, so get new quotes before renewing. And third-party, fire and theft are often no cheaper than comprehensive insurance.
- Read the small print, where nasty catches might be buried.
- You have a cooling-off period (anything from seven to 30 days) to cancel a policy after signing.
- If you’re not happy with how any of your claims have been processed, go to medicalschemes.com for medical aid, ombud.co.za for long-term insurance or osti.co.za for short-term insurance to lodge a complaint.