INSURANCE INFORMATION

Please see information on Insurance below.

        

What is Insurance?

Insurance is an essential part of life and most people have at least one insurance policy. In essence, when you buy insurance, or take out an insurance policy, you transfer the risk to someone else, an insurer, in exchange for the payment of a premium. The premium is the amount that you pay for the insurance.

Insurance is usually used to protect against the possibility of financial loss where the insurer will compensate you. It gives you peace of mind and security because should the unexpected happen you can be safe in the knowledge that you are financially covered.

With so many insurance deals on the market it is worth shopping around. Consider how suitable the insurance is for your needs and take your time to compare policies thoroughly. It is worth remembering that most insurance companies offer a free or no obligation quote.

What are the different types of Insurance?

You can take out insurance to cover a variety of important assets. There are many of types of insurance on the South African market which include:

  • Home Insurance
  • Health Insurance
  • Travel Insurance
  • Vehicle Insurance
  • Life Insurance
  • Funeral Insurance
  • Pet Insurance
  • Business Insurance

What is a Claim?

An insurance claim is what happens when you need to claim compensation from the insurance company, say for example you have crashed your car and need to get it repaired. Most companies have dedicated claims teams that can deal with your case and can be contacted at any time of the day.

In general the more claims you make, the more of a risk you are considered to be and so the higher your premiums are likely to become.

How much will it Cost?

Insurers calculate the risk involved. They will calculate how likely it is that you will need to make a claim which is based on a number of factors. The premium varies according to the insurer, insurance policy and cover type. Usually, the higher the risk of loss, the higher the premium. You might be able to pay for it in monthly instalments or annually.

You should watch out for any additional charges, such as administration fees. You need to find out exactly what happens if you miss a payment or you want to cancel or change your policy.

Are there are any Disadvantages?

Some may feel that taking insurance is paying for something which might never happen. You might never have to make a claim but it is a risk that you canít afford to take because if something does happen and you donít have the insurance you could be financially ruined. No one can predict the future, and it is better to be safe than sorry. The potential risks without insurance are great.

The main disadvantages that you might experience are policies which do not cover you adequately or are not of good value. You need to make sure that you are fully covered for the things that you want to be covered for or you could face difficulties when making a claim. You may mistakenly believe that you will receive compensation for something that is not included in the policy.

Remember that insurance can only provide compensation for the financial loss; It cannot cover for sentimental loss. Make sure you are fully covered for those things which you want to be covered for and are not wasting money on the cover that you donít need.

        


Please note that Which Way To Pay South Africa www.whichwaytopay.co.za is not authorised to give personal financial advice under the South Africa financial regulations.

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