Asset Risk Planning.
-In this section we would like to assist and guide you in getting you the correct and most economical plan in place to protect your assets.
Without stating the obvious, it is vitally important to have a plan in place to ensure that you and your family do not experience hardship as a result of the unplanned loss of assets (your home, vehicles, household items and goods, or your business) that you own. These unplanned situations may also include medical events, personal liability and inconveniences or loss during travel.
Unlike life insurance, short term insurance is taken out only for the period that you have need for it.
Short term insurance therefore provides us with the opportunity to cover the financial risks to our material possessions and those of our loved ones without paying hefty premiums.
What exactly is Short Term Insurance?
Short term insurance is quite simply an agreement between a policy holder and an insurer. This agreement is binding for a limited period or is flexible according to the individual’s circumstances. Basically, you are able to insure your car, your property, your household possessions or your person, annually or for any agreed period.
The flexibility of short term insurance is great as it can be adjusted to your specific and changing needs as time passes & your circumstances change.
So, how does it work?
Quite simple and logical actually. You will get a quote from an insurance company for the asset which you would like insured. They will assess the risk to this asset, based on a number of factors such as location (if it is a home that is being insured), your age, gender and driving record, purpose of use and where it will be kept etc, (if it is a vehicle you are insuring). In this manner the insurance company will then arrive at a risk profile for this asset. Based on the risk profile they will then also be able to tell you what premium will be payable in order to insure the asset. It is then up to you to either accept or reject the premium offer.
The premium is the monthly payment that you will make to the insurance company in exchange for the undertaking by the insurance company that should something happen to your asset, that it will be repaired or replaced at the insurance company’s cost.
Very important: Please make sure that the contract that you enter into with the insurance company covers the risk that you intended and in the manner in which you intended.
Make sure that you are familiar with the terms and conditions of your policy so that you do not get any unexpected and unwanted surprises.
And, if I need to claim?
Once again, this is a very simple process.
All you do is contact the person or company who set up your Short term insurance and ask them for a claim form.
They should explain to you the exact requirements as well as the process that will be followed.
Where to start.
There are a vast number of short term insurance providers in South Africa.
It is important to choose someone who will give you great service and be there when you need them. It always boil down to service and relationship. Below are a few pointers to get you on the right track.
- Firstly, make sure you are dealing with a reputable provider.
- Is the broker able to present you with multiple options from a range of insurers.
- Ensure you get quotes from a number of different insurers.
- Make sure you are comparing like for like (cover provided as well as premiums, excesses etc).
- Make sure you understand the excess requirements on claims and ensure that what is offered to your covers the risks you want covered.
- Always read the fine print.
As your wealth increases so will the number and value of your assets. It is always a good idea to insure your valuable assets. Uncertainty can bring with it a lot of unnecessary anxiety.
Having Short Term insurance in place will give you Peace of Mind.
If you would like our help, please pop us a message.
You have now covered all 4 of the main areas of Financial Planning. We hope and trust that you are feeling much more in control of your life and have a clear and focused financial road ahead.
To make sure that you stay on track and keep your momentum, click the button below to go to the final step in your Planning process…