When evaluating what kind of insurances we must have, three come to mind, of course, there are dozens of insurances one can buy making it more difficult and confusing to choose which ones we really need. There are three different insurance covers we consider essential: Possessions, Health, and Life insurance.
POSSESSION’S INSURANCE: HOMEOWNER’S, RENTER’S AND CAR INSURANCE
Possession is a broad word, by possessions we mean, homeowner’s or renter’s insurance, depending on your case, and car insurance. When in the market for homeowners insurance you must take a few items into consideration. You need to make sure your homeowners or renter’s insurance will also cover some of your personal belongings: Jewelry, art, and electronics. Let’s begin with the protection of the property in the case that you are a homeowner. Here you have two options: to buy a cash value policy or a replacement policy.
A cash value policy will pay for the value of the property at the time of the incident that means, if you bought your property for R 5 000,000 but at the time it got ruined it was worth R4 500,000 that’s how much your cash value policy will pay for. The other option is to buy a replacement policy, this is more expensive but it guarantees you that you will be able to rebuild your house from scratch at a comparable quality of the one destroyed. When buying either one of the policies, don’t forget to tell your agent of any home improvements you have made. It’s important that your homeowner’s insurance also covers personal items such as jewelry, art and electronics.
Every insurance company is different, but personal belongings are usually covered up to 75% of their face value. In the event that you are in the market for renter’s insurance, you need to make sure that your renter’s insurance also covers the belongings mentioned above: jewelry, art and electronics. Last but not least, it is important to keep a list of the personal items that you have and considered to be included in your homeowners or renter’s insurance. This will make it easier in the event that you do need your items to be replaced because they were stolen or destroyed in a disaster.
In South Africa by law, any car owner that holds a driver’s license must have car insurance. According to experts you should base the amount of coverage that you need on the assets that you have. The more assets, the more coverage. Here’s what’s recommended:
You might be familiar with this numbers:
50/100/25 they refer to the amount of damage covered by the policy.
R 500,000 bodily injury liability for one person injured in an accident
R 1 000,000 for all people injured in an accident
R 250,000 property damage liability .These numbers vary but there is a minimum liability coverage.
Again, when buying car insurance keep in mind the amount of assets that you have, don’t over buy but also don’t under buy. Uninsured/Underinsured motorist: You might be in for a big surprise even if you have car insurance but the person who hit you does not. PLEASE ask your agent about Uninsured/Underinsured motorist coverage. When buying car insurance, do consider your driving habits, the amount of driving that you do and the area where you live.
Health Insurance can be very expensive, especially if you are an older person or if you are a woman who wants to get pregnant. In South Africa, some pre-existing conditions are accepted, that’s a good thing, unfortunately it won’t come cheaply. Some pre –existing conditions are not considered.
Online Websites offers much information on the importance of life insurance
Do you have assets, children, dependents that you want to make sure they will be okay financially?
If you answer yes to any of the above, you definitely should consider buying life insurance. Buying life insurance from best commercial business insurance could be as confusing as buying health insurance. I will try to make it easier for you. There are two types of life insurance: Term Insurance and Permanent Insurance. Term Insurance offers death benefits only if you die. Permanent insurance also know as whole life insurance, also offers death benefits and a savings account. If you are still alive when the insurance expires, you get some of your money back. How much? It depends on your premium. Buying any kind of insurance can be a very confusing experience. Having a reliable and trust worthy agent can make the difference between making your decisions really protect your assets.