Johannesburg - Some people believe that they place their assets should not be enough for them to do anything that can save money.
The problem is that in most cases, expenditure is incurred after an accident, a death of a loved one, or a disability of any savings or funds that are beyond a person can accumulate and it is for this reason that such an insurance the key component of your financial planning.
Purchasing insurance cover to pay for damage or loss of property, especially when it is a costly expense of having to use their savings, in the long run, is more economical.
Boitumelo Mothoagae, a financial consultant and client retentions at Liberty Head explains: "guarantee that you correctly that the different purposes for long and short term insurance are insured for the service lies in understanding the mystery. ( )
The Importance Of Life Insurance Property
"Ideally, you should make sure that the insurance pay-outs of the event and that its financial situation is relatively unaffected time do not incur any additional costs."
Short-term insurance is a financial contract that in case of damage or loss to protect their movable property with an insurance company is taking.
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The contract stipulates that the company will pay a set amount of money, or to change or movable property in the event of loss or damage will be repaired. Contract length can vary from one to 12 months.
An example of the short-term car insurance and home insurance.
On the other hand, long-term insurance is a financial contract that you end up with an insurance company's ability to protect earnings. This means that you yourself, death, disability and/or to protect in the event of layoffs.
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In these cases, where its ability to earn a wage agreement has been in any of the insurance company, or your choice, such as a specified amount "Sum" is known to pay a designated beneficiary will.
Consumers
Unless you are working or you are living may remain closed for the duration of the contract.
An example of long-term disability insurance or critical illness cover.
"In 2013, Liberty R2.71bn out the insurance claims in total, with payment R1.86bn paid out for life insurance cover, income protection and life cover R414m in 2012 to R400m paid out approximately R 2.33bn for growth to R439m.
Mothoagae said: "These figures indicate that, even though consumers are financially strained, they are still investing in insurance cover.
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"More and more people knowing that anything should happen to their property or their earning capacity, are opting for peace of mind, they will be adequately compensated."4
Repairs
There are many instances where small scale can be a great inconvenience of not having insurance and being robbed in a foreign country, for example, while traveling without travel insurance could further exacerbate the situation, are doing. That you money without being stuck in the country can carry. Or a simple geyser burst without insurance at home you clean up the mess and pay for repairs out of your own pocket geysers and damaged carpet and ceiling may change.
"These are just minor events and hope that you never find yourself in that situation, but the reality is that life throws curveballs and you can never be prepared.
"You also have a worse situation where you are laid off, you may find yourself without income security.
"This is the point where your assets are to be confiscated, and as such, this type of insurance should be non-negotiable," Mothoagae says.
Shortfall
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This coverage is exactly what you ask your financial advisor is key; Your cover what conditions and how much you will be paid out in the event of loss or damage to the. Also that you are fully insured for the amount of any reduction is important to check.
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the annual review of the plan to help. This way, you always have the most appropriate cover for their quality of life will be insured.
Mothoagae "The insurance paid each month may seem like a hassle, and you are lucky enough not to claim on your insurance needs are, you can feel that you have nothing to money is spent.
"However, when something goes wrong, the insurance you cope with the stress of the situation and without placing a strain on your finances to cover the expenses to be able to help," Mothoagae said.
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