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Understanding the importance of insurance

Understanding the importance of insurance
30-03-22 / Andre Hugo

Understanding the importance of insurance

Most people regard insurance as an unnecessary expense. And yet, an emergency or unexpected situation can leave those without it with a bill that can wipe out their life savings. Insurance comes down to having financial protection while transferring the risk to an insurer.

Admittedly, in these trying financial times spending money on something that does not provide immediate benefit might be frustrating. After all, a person would much rather like to save, invest for the future, or have financial freedom. But even if this is done diligently every month, all of that could change in the event of an accident.

Insurance provides the peace of mind that should something bad happen, a person can minimise the impact it will have on their finances.

Insurance for all seasons

There is a dizzying variety of insurance options to choose from. However, every person’s needs are unique. Their circumstances, family, lifestyle, and employment status can help determine what kind of insurance they need.

For instance, having a car means there is a high likelihood of an accident occurring sometime in the future. Car insurance deals with a potential accident and repair bills. Most people either get third-party car insurance (where only the other person’s car is covered in an accident) or comprehensive insurance (both their and the other person’s car will be covered).

During the past two years, there is a much greater awareness of the importance of having medical aid or health insurance. Some medical aid plans only cover hospital costs (if a person gets into an accident or is injured) and others cover doctor’s visits, medications, unexpected illnesses, and so on. In some cases, a person’s employer might subsidise their medical aid.

For its part, home insurance protects a house against damage, theft, and accidents like flooding. It also covers the contents of a house like laptops, iPads, expensive jewellery, furniture, clothes, and so on.

While this takes care of property and might not be necessary depending on the person’s living arrangements, life insurance is something more critical especially if someone has a family. Life insurance covers the person in the event of death, hospitalisation, or serious illness, and ensures their family is financially covered if they are unable to provide for them any longer.

Honest assessment

These are just some of the types of insurance available. Ultimately, having insurance means a person has one less thing to worry about. With insurance, a person does not have to worry about life’s hard knocks.

Spot Money provides customers with an intuitive mobile app to easily find the right insurance for their needs. The app can provide a user with a range of life cover, funeral, and car insurance offers. All that is required is for the person to log in and begin the process by providing the necessary information. Spot Money will take care of the rest.

Andre Hugo is CEO at Spot Money.

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