Types of Insurances in South Africa to cover various types of Risks
Insurance is a pact between the policy owner and the insurance company wherein the company pledges to bear the expenses in case of death, accident or medical illness depending on the type of insurance policy. There are several types of insurance. Let us take a look.
We all know life is uncertain. If the main earning member dies suddenly, it will wreak havoc on the family members. So, it is wise to take a life insurance. This acts as a security that in case the insured member dies in an accident or due to some illness, the family can be compensated financially to an extent. Though loss of life cannot be compensated, buy thinking practically the dependents need money to carry on with life. Do check various policies and take an informed decision.
As the name suggests, business insurance covers business losses and losses involving accidental fire or due to natural calamity. In times of financial crisis, insurance company is supposed to pay for business debts and any penalties apart from paying for business equipment. Business insurance is like a contingency plan or back-up plan that helps a business to revive, recover and sustain. You need to determine a suitable insurance coverage amount.
Talking about car insurance in South Africa, you have various options like Comprehensive, Third Party, Fire & Theft or Third Party only insurance cover options. All these are not mandatory; only few are. Thus, you can choose as per your need. You must also take extended motor warranty for repair and maintenance.
It looks awkward to think of having a funeral fund but it is a practical thing to do. Life insurance pay check does not arrive the very moment ones dies and moreover, death is not a planned activity. Since, the funeral of a person cannot wait, thus buying a funeral insurance is a wise thing to do. Through a funeral insurance, a funeral and cremation can be carried out without any hassle as arranging funds is not a problem, especially if death is sudden. Insurance companies usually pay within 48 hours of the death and hence everything can be carried out smoothly.
In case you or any family member needs to be hospitalised for any illness, the bill can be huge considering high costs these days. So, everyone must have a hospital insurance policy these days and there are several insurance companies in South Africa. This insurance cover ensures that your hard earned money is not spent on hospitals and you or your loved one gets well without burning a hole in your pocket.
As the name suggests, legal insurance covers all the expenses in case you get involved in any legal matter. These days, you never know when someone drags you into legal battle, and you have no choice but to hire a qualified advocate to save yourself. Legal insurance will pay for legal assistance, and you need not worry about finances involved.
We are living in an age where you never know when a medical emergency will arrive. So always buy a medical insurance policy for your family so that whenever such an emergency arrives, there is no panic to arrange funds. Go for cashless insurance.
Now that you know about various types of insurances, plan your finances well and go for these insurances to live a tension-free life.