Insurance protects and manages risks. When you buy insurance, you transfer the cost of a potential loss to the insurance company in exchange for a fee, known as the premium. Insurance companies invest the funds securely, so it can grow, and pay out when there’s a claim.

Insurance protects you against the risk of the unknown. You probably wouldn’t even consider not having homeowner’s or car insurance, but you might not know what kind of insurance you need. Insurance is there to help you if you can’t afford to pay out of your pocket to set right something that has gone wrong, like a car accident, a tree in your yard falling on a neighbor’s house, the medical costs of a serious illness, or the death of a spouse.

Insurance helps you:

  • Own a home, because mortgage lenders need to know your home is protected. It covers you for repairs and replacement of any damage that’s covered in your policy. It provides protection against theft, damage from perils like fire and water, and financial responsibility that could result from a visitor or guest being accidentally injured on your property.
  • Drive vehicles, because few people could afford the repairs, health care costs and legal expenses associated with collisions and injuries without coverage. Car insurance is also a legal requirement.
  • Commercial Auto Insurance: Commercial auto insurance protects a company’s vehicles. You can protect vehicles that carry employees, products or equipment. With commercial auto insurance you can insure your work cars, SUVs, vans and trucks from damage and collisions.
  • Maintain your current standard of living if you become disabled or have a critical illness. It covers your day-to-day costs and larger expenses like your mortgage while you focus on your health and recovery. Protecting your income by purchasing disability insurance is a fundamental risk management strategy for all wage earners whose income is required to maintain their lifestyles. The two primary types of disability insurance include: Short- term: Coverage will provide income replacement protection, usually after one week of disability, and will pay for up to six months. Long-term: This type of disability insurance kicks in generally at the six-month mark and continues until age 65.
  • Cover health care costs like prescription drugs, dental care, vision care and other health-related items.
  • Provide for your family in the event of a death. There are life insurance options for short and long-term needs that protect your family’s home, mortgage, lifestyle and the cost of post-secondary education for children.
  • Run a small business or family farm by managing the risks of ownership. Get owner, business and employee coverage, and provide group benefits and retirement plans for employees.
  • Take vacations without worrying about flight cancellations or emergency medical expenses abroad.
  • Minimize Liabilities – As a Business owner you should obtain liability insurance in case (for example), a customer was to slip and fall in your place of business.
  • Defence agains damages or failure – Professional Liability Insurance: this type of insurance is also known as Errors and Omissions Insurance. The policy provides defense and damages for failure to or improperly rendering professional services.  Your general liability policy does not provide this protection, so it is important to understand the difference.

These types of insurance are the common types that almost everyone should have. We can excuse you from having car insurance, for example, if you don’t drive a car, or property insurance if you live with your parents, but if you’re a working adult out on your own, you should considered all of these, if not for your personal protection, but for the protection of people around you or close to you.

Knowledge can make a big difference when it comes to buying the right insurance. Contact our adivors to answer your questions or help with finding the right insurance cover for you or email us directly for assistance. Let you insurance protects what matters.

In our next article we will discuss why it’s not enough to rely on the Road Accident Fund. South African insurance law: who needs an car insurance policy?

Source  –


(Visited 24 times, 1 visits today)