Your life and lifestyle can undergo many changes as the days, months, and years pass by. Therefore, it is important to review your insurance policies at the start of the new year.
According to Karen Rimmer, head of Distribution at PSG Insure said: “Part of developing good financial hygiene involves making a habit out of reviewing your insurance needs at the onset of each year,” Rimmer said.
“You could think of it as your ‘annual audit’ – a way of making sure that you’re never under-insured and that you are ready to make an informed decision when your policy’s annual renewal date comes up.”
These are the aspects to consider:
Car insurance
According to Keletso Mpisane, head of MiWay Blink, it is advisable that people review their car insurance policies to make sure that it meets all of their requirements.
Mpisane said that understanding how premiums are calculated helps in this process.
“Some prefer to pay a lower monthly premium and opt for a higher excess to be paid in the event of a claim, while others don’t want to fork out a large excess amount when they need to claim and rather prefer to pay a higher premium every month,” Mpisane said.
People should also check that their car insurance policy meets the industry standards.
Life insurance
Lee Bromfield, the CEO of FNB Life, said that for families who have plans to protect themselves against the financial impact of tragic events, we encourage consumers to make sure they have funeral and/or life insurance, and for those who have insurance, people should make sure it is maintained on a regular basis.
Make sure that your beneficiaries and their details are up to date to avoid delays in the event of a life insurance claim. Check your policy to see if you have adequate insurance cover for a range of circumstances, such as death, disability, and chronic illness.
Home insurance
Wynand van Vuuren, the client experience partner at King Price Insurance, said that it is vital that people insure their home contents for their replacement value and not what they paid for the items.
“Also, make sure that you’ve specified any high-value items that you take outside the house under your portable possessions cover, or they’re effectively uninsured. That includes your phone, laptop, jewellery, watches and sunglasses, clothing, your gym bag and its contents, and luggage, for example,” van Vuuren said.
If you have bought a new TV or laptop, make sure that they are included in your home insurance policy.
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