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Insurance Companies – Know How to Choose the Right Insurance

Filtering through the many different insurance companies is one thing, but knowing how to choose the right insurance is even more important.

That being said, the type of policy you should select will depend largely on your individual circumstances, as well as what you want to gain from the policy.

Insurance companies - Types of insurance

How to Choose the Right Insurance Company

The truth is that knowing which is the best out of all the insurance companies out there can be tricky and requires an in-depth understanding of the financial world and all its jargon.

Therefore, hiring a financial advisor to help you make the best choice is highly recommended. We can help you establish exactly what it is you need from your investment and help you achieve it with peace of mind.

Types of Insurance Offered by Insurance Companies

Personal Insurance

This insurance includes life insurance, funeral cover, income protection, disability cover, severe illness cover.

Life insurance

Life insurance provides financial protection to your surviving dependants or beneficiaries that after you pass away.

There are several variations of life insurance to consider, each one designed to suit the needs of the surviving dependents.

Funeral cover

This insurance works by paying a monthly premium towards a funeral plan which will pay out a specified amount to your family in the event of your death.

Therefore, your family won’t need to worry about how they will cover the costs of your funeral during their time of mourning.

Income protection

Included in this is disability cover and these policies cover you in case you are suddenly unable to work and fulfil your financial obligations.

This could be due to a serious illness, injury or disability that will negatively impact your ability to provide financially for yourself and your family.

Severe illness cover

This type of insurance that helps you cover the medical costs related to serious illness such as cancer or heart disease.

This is different to a medical aid plan which usually offers limited benefits for the treatment of severe sickness.

Medical Insurance Companies

Also referred to as medical aid, this insurance helps you cover day to day medical bills such as visits to the specialists or GP, basic dental procedures or monthly chronic medication.

All medical insurance companies offer an array of plans, each offering different benefits and once again, choosing the right plan for you will depend on your individual needs.

Hospital plans are focused on covering hospital related costs such as planned or unplanned surgeries or procedures, while a normal medical aid can provide cover for hospital and day to day medical costs.

Included in medical insurance is also gap cover which is an extra safety net that is there to cover costs not covered by your medical aid so that you don’t have to pay out of pocket.

Short-Term Insurance

This type of policy covers your immovable and movable assets and personal belongings. This can be anything from your house to your car to your wedding ring or laptop.

The type of cover can vary and includes damage, loss or theft. Once again, it’s important to understand which option is best suited to your particular needs.

Olemera Financial Advisors Johannesburg

We have only covered the basics regarding the different types of insurance offered by insurance companies in South Africa.

There is much more to know and consider before choosing the best type of insurance for you.

Our financial advisors are equipped with all the tools necessary to help you select the perfect policy so that you can get the very most out of your investment.

To find out more about our financial services, including choosing the right insurance companies and policies, contact us.

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