Insurance isn’t the most interesting of topics – nor a very good conversation starter. But it’s still an important aspect of your well-being

The world of adulting has its perks, but also its plights and blows. We often can’t help but give a half-maniacal, sad little giggle when a bright-eyed five- year-old exclaims ‘I want to be a grown-up!’. If anyone had told us at the tender age of ‘small’ that this is what the real world was like, we would’ve cancelled our subscription then and there. Instead, here we are, scratching what hair is left on our heads about which insurance plan to choose. There are four most essential types of insurance: life insurance, health insurance, home insurance and auto-insurance. How do we know we’re playing the insurance game with our best hand? Worry not, we just so happen to know a little something about this deck of cards.

Life Insurance/disability insurance
Life is valuable, life is short. With life insurance, you’re making sure that, in the event of your death, all your assets, family and loved ones will be taken care of. For single persons, personal insurance should suffice. It covers funeral costs, income protection, illness, and disability insurance.  But those in committed partnerships or with families may need something a little more comprehensive. There are two types of policies: term life policies and permanent life policies. Term life policies let you obtain financial coverage until you reach a certain financial milestone. That may be when you retire, when you marry, when you send your children to university. If you’re on personal insurance, it won’t be able to cover your entire family, but you will still be able to get insured in the event of your death. If you’re in a committed relationship, with single policies, you could list each other as beneficiaries of one another, so that in the case of one or the other’s death, the remaining partner will benefit from the insurance as well as it covering the funeral.  Permanent life policies are more suitable for families with dependants. These types of policies do not expire, and usually combine a death benefit with savings portion. This means that the insurance coverage is for the full lifetime of the insured, and the savings grow at a guaranteed rate. So you’re able to borrow funds at cash value, such as paying school fees or covering medical expenses. Permanent policies do take a little while to start building savings, but if you decide to invest in a term life insurance policy, you could always switch over at a later stage. 

Health Insurance
You should be able to get medical insurance through your company’s group coverage. Many companies offer medical insurance to their employees because investing in group coverage works out cheaper than taking out personal policies. But if you’re looking to go independent, there are a few things to take into consideration. The biggest of all being to look at your age and overall health status. Generally speaking, if you’re young, chances are you won’t need to pay too heavily for medical aid coverage compared to someone older who needs to visit a doctor more routinely. A simpler hospital cover suffices if you’re generally healthy but may need cover for occasional trips to  the hospital.  Those in a relationship without dependents might also just want to take out a more balanced option with day-to-day benefits, but also specialised benefits such as dentistry and in-hospital cover. Of course, those with families and dependants may want to take out a more comprehensive cover, including specialist visits and in-hospital benefits. This works especially well for those who need to receive chronic medication or visits to a specialist. 

Auto insurance
This one’s a little simpler, so prepare to give your eyes a bit of a break. For new drivers, a comprehensive car insurance plan is suitable, whereas a third-party insurance plan is suitable for more experienced drivers. Comprehensive insurance covers for theft, hijacking, natural or other disasters as well as damage to the vehicle. Third-party insurance covers any liability for damage caused to another vehicle, but not your own. This is also the cheapest option as it assists with the least protection. For drivers with family passengers in the vehicle, a comprehensive insurance plan is a more viable option, given that they could get injured in an accident.

Home insurance
If you own your home, you’ll likely have been insured from the day you became the homeowner. For homeowners, a more comprehensive insurance plan is needed to be taken out, increasingly so for the longer you’ve had your home. Generally, every asset that needs to be insured should be listed separately and explicitly when speaking to an insurer. This goes hand-in-hand with reading the (albeit boring) fine print to ensure that all your valuables are included in the cover. Comprehensive home insurance covers damage to the interior and exterior of your house, but any destruction caused by natural disaster or poor maintenance is not generally covered and you may need separate riders. The same goes for any free-standing structures or extra property. Doing an all-in-one policy may seem more hassle-free, but make sure that you’re on top of changes to your policy, updates to your home, and any assets needing coverage.  It’s never a bad idea to keep track of what’s happening in the insurance game. Before taking out a new policy, compare quotes from different companies to find what suits your needs. The same way you aren’t the person you were five years ago, neither are the things around you. Stay assured about your insurance! 

Words by Saadiqah Schroeder
Photography: Pexels