It is almost one of our favourite times of the year – the Easter holidays – a time when many of us pack up our cars and head for a laidback destination for a well-deserved break. Unfortunately, this is also one of the deadliest times of the year on South Africa’s roads. Preliminary statistics released by the Department of Transport in 2013 indicate that there were more than 200 crashes resulting in 241 fatalities over Easter last year.
‘The last thing we want to do is fear the worst,’ says Jaco Gouws, Risk Actuarial Manager at Old Mutual. ‘The reality is that tragedy can strike any family, so it’s incredibly important to make sure that you are covered should something happen.’ Before you make your final holiday arrangements, ensure that your car is serviced and insured, and that you are adequately covered for death and disability.
Also, remember to check that the premium payments of your existing life and disability cover are up to date and that your current cover is still sufficient to meet your financial needs.
Life cover will help ease the burden of debt such as an outstanding bond, estate duty, capital gains tax and other costs. Disability cover will help with the costs of making adjustments to your lifestyle as a result of being disabled in an accident. Also check the pay-out percentages of the company that you are insured with, says Gouws. Certain insurers who offer cheaper premiums might also have a very low pay-out percentage. Cheaper cover does not always match the relevant risks, annd often lower costs mean fewer benefits.
‘Your financial adviser will also be able to explain any exclusions or shortfalls that may be applicable to your insurance. And remember that life and disability cover should form part of a holistic financial plan,’ says Gouws.