The purpose of insurance is to protect you from huge financial pressures as a result of some kind of loss. It could be loss of a loved one, your job, your physical abilities, your car, or your house. Either way, losing one or more of these things can incur tremendous costs.
Being unprepared for financial emergencies can really put you back several steps and jeopardize your chances of achieving financial security in the future. Personal financial planning helps you prepare for various obstacles, losses, and emergencies which could otherwise cripple you financially.
Insurance can be broken down into two main categories: short-term insurance and long-term insurance.
Short-term insurance can be described as insurance for your “stuff”. In other words, short-term insurance covers your assets such as jewellery, furniture, electronics, cars, valuable art, and your home.
Long-term insurance is insurance for you. This insurance aims to cover you financially if something bad happens to you such as disability, loss of income, and loss of life. Long-term insurance can also be used to protect your family members from any financial burdens which arise after your passing.
It can be tricky to figure out what type of insurance you need but our financial planners in Johannesburg can help you figure it out. In the meantime, there are some questions you can ask yourself if you feel you don’t really need insurance at all:
If you answered yes to any of these, it means you should be getting insurance.
Although the two main categories of insurance are short- and long-term, there are hundreds of different types of policies which fall under each category.
Our financial advisors understand that figuring out which type of insurance you need can be extremely overwhelming, but we are here to make it easy for you.
Contact us and let’s have a conversation about insurance, what type you need, and why its something that should be non-negotiable.
Lastly, keep an eye out for our next few articles where we will be discussing the topic of insurance in detail.
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