As the new year begins, many of us set ambitious resolutions—from hitting the gym to saving more money. Yet one critical resolution often gets overlooked: securing your financial future. While focusing on fitness and budgeting is important, reviewing your insurance policies can offer peace of mind and protection against life’s uncertainties.
According to a 2022 study by the Association for Savings and Investment South Africa (ASISA), 60% of South African households are underinsured for life cover, leaving families vulnerable in the event of a loss. On the other hand, some individuals unknowingly pay for redundant or unnecessary insurance products, impacting their disposable income. Regularly revisiting your policies ensures you have the right coverage while avoiding overpayment.
Life is full of changes, and your insurance needs should evolve with them. Significant milestones such as getting married, welcoming a new baby, buying a home, or even changing jobs should prompt a review of your life insurance policy. For example, a couple who has recently had their first child has discovered their existing life insurance would only cover their outstanding bond and not provide sufficient financial support for their child's upbringing. Updating their policy will provide a tailored solution matching their growing family's needs.
Short-term insurance policies, like those covering your car, home, and valuables, also need regular review. Asset values change over time, and inflation impacts replacement costs. For instance:
Vehicles: The depreciating value of a car may mean you’re paying too much for insurance.
Electronics: New gadgets purchased over the holidays might not be covered under your existing policy.
Home: Renovations or upgrades could require adjusted coverage.
By reassessing your short-term insurance, you can ensure accurate coverage and potentially reduce premiums.
The start of the year is the perfect time to take control of your financial well-being. Make reviewing your insurance policies a priority, ensuring they align with your current circumstances and future goals. Don’t wait for a crisis to discover gaps in your coverage.
Schedule an insurance review with PBA Financial Services today and step confidently into 2025 with a secure financial foundation.
Sources
Association for Savings and Investment South Africa (ASISA). "2022 Insurance Gap Report." Retrieved from www.asisa.org.za.
StatsSA. "Household Finances in South Africa: Trends and Insights." 2023.
Disclaimer:
The information provided on this blog is for general informational purposes only and does not constitute professional financial, insurance, or investment advice. While we strive to provide accurate and up-to-date information, the content is not intended to address the specific needs of any individual or organisation. Always seek the advice of a qualified financial advisor, insurance professional, or other relevant expert before making any decisions based on the information provided here. We do not accept any liability for any actions taken or decisions made based on the content of this blog.
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