Weather the tough economic times and stay the course with your insurance policy
Johannesburg - The last couple of months have been a financial uphill battle for many consumers as a result of the upward interest rate cycle, fuel price hikes and increased cost of living. This might have led some consumers to consider cancelling their insurance policy commitments.
Lee Bromfield, Chief Executive of FNB Insure says, “One common behavioral trend that we’ve observed year-on-year is that when consumers are faced with immense financial pressure, they often either skip paying insurance premiums for certain months or cancel their policy, hoping to take it up later when their financial situation improves. The truth is that keeping up with your insurance policies and maintaining adequate insurance cover is among the most important financial moves you can make during tough times. If you have loved ones who count on you for financial support, your insurance cover should remain your priority, to protect yourself and your family should the unfortunate happen.”
FNB Insure provides the following tips for potential financial relief during tough financial times:
- Consolidate your life insurance under one provider: Consumers who hold several policies with multiple providers are inevitably going to pay more due to administrative costs. Consider covering your family under one policy to pay one premium. For instance, with FNB Life funeral cover, you can cover up to 21 family members under one policy.
- Review your budget: You’ll be surprised how much you can save by being diligent in monitoring and tracking your expenses. Make this a weekly exercise to assess what you spend your money on, and which items are necessary. FNB customers have access to the Smart Budget tool, located under the nav» Money functionality on the FNB app. Smart Budget uses the bank's dynamic data capability to help you better manage your money and financial commitments through spend and budget limits as well as alerts.
- Revisit your policy: If you had an increased premium on your policy as a result of health conditions or unhealthy lifestyle habits, you could approach your insurer to reconsider the premium if your health has improved significantly or you no longer take part in a high-risk habit such as smoking.
"The next few months may continue to be financially demanding for consumers, and the impact could be more pronounced among those who are living on or below the bread line. In times like these, it’s important to avoid making short-term decisions that could have far-reaching consequences for your family," concludes Bromfield.
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