When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
According to Vera Nagtegaal, Executive Head of Hippo.co.za, it’s not uncommon for people to take out short and long-term insurance policies and not give their policies another thought. “Usually, once the paperwork is out of the way, these are completely forgotten about until something happens that needs urgent attention. But, it is incredibly important for consumers to regularly review these – especially in the event that their lifestyles and needs have changed.”
Nagtegaal says having a simple checklist, and a set of questions for your service provider that you review at least once a year will help you understand which policies need your attention.
Moving homes or buying large household items shouldn’t be the only reason you review your household insurance cover. Think about the following:
Motor vehicle insurance
Life, disability and funeral cover
“Review your life, disability, and funeral cover to ensure you’re still appropriately covered,” explains Nagtegaal.
Nagtegaal explains that it is important to spend time reviewing your policies. “If you are not familiar with the technical details of the various types of cover you may have, as well as whether or not you are getting the most out of these, it is recommended that you speak to an advisor who will be able to guide you through the process of evaluating your policies. A professional will help you determine your needs adequately and help you cover blind spots you may not have considered.”
“It is also equally important that policyholders are aware if the cost and benefits of any policies have changed. While it may not always be necessary to swap providers, it is incredibly important for consumers to compare what they are getting against what other providers may be offering,” Nagtegaal explains.