UNDERSTANDING THE BASICS OF INSURANCE

Getting the protection you need for yourself, your family and your assets can be a bit overwhelming. But it doesn't have to be. Here's some information to help you make sure all your bases are covered. 

Why do I need insurance?

It doesn’t matter how careful you are, there are things in life you can’t control. And even the smartest plans can come unstuck if you don’t give yourself adequate protection.

Whether you’re looking to protect yourself, your family, or your assets, insurance can give you the second chance you need to get on with life – without having to start all over again.

What types of insurance are available?

Most insurance companies classify their products as either ‘general’ insurance or ‘life’ insurance. 

GENERAL INSURANCE

Many of us may already have some kind of general insurance, particularly if we own a car. General insurance provides protection for loss of your assets. This includes things like your home and its contents, your car, and even travel insurance.

General insurance is a great way to protect your property against the unexpected. 

 LIFE INSURANCE

Life insurance protects you and your family from the financial consequences of sickness and injury. There are different kinds of life insurance products: 

Life insurance: to protect the financial contribution you make to your family. 

Income protection: to replace your income, living expenses, and business expenses.

Recovery Money: to protect against the financial consequences of trauma and disability.

How do I buy insurance?

 Visit an insurance agent or Brokers: An insurance agent or broker can help you choose the right types of life insurance cover, and work out how much of each you need. They can also help you structure your life insurance in a way that suits your circumstances and budget.

How much does insurance cost?

The cost of insurance is called the ‘premium’. It is calculated based on the amount of cover you want, and the risks associated with the asset you want to cover. You can usually pay this premium monthly, half yearly or annually.

What happens if I need to make a claim?

There’s a perception insurance companies don’t pay up when the time comes for you to make a claim. Call your insurance agent or brokers.