We are almost all held hostage by Insurance companies in one way or another. They charge us exorbitant fees in the hope that nothing happens to us and we pay those fees because we live in fear that something bad WILL happen. It’s a strange gamble where you only win if you lose, but if something holds value to you then you don’t mind paying to have it protected.
However, there is one form of insurance that is too often overlooked and it’s meant to cover the most valuable possessions you will ever own.
But first…let’s look at the most common forms of insurance
- Medical Insurance (aka Medical Aid)
Do not get me started on the cost of medical aid. It is absolutely ridiculous what a family of four has to fork out on a monthly basis and then to only be covered up to medical aid rates which happens to be a quarter of what doctors actually charge. Yet we pay the fee and hope we never have to make use of the benefits
- Gap cover
This sneaky little insurance found a gap in the market and has played on our fears so well that it’s almost become a necessity. Unplanned hospital visits can land you in debt really fast without this little life boat. So we pay it and again hope we never need it.
- Life cover
We are literally betting against ourselves living in this one. It would be funny if it weren’t so sad. I see Life Cover as a necessity when you have kids. The thought of your kids growing up without you is heartbreaking enough, leaving them without a financial cushion is even worse. To make sure our loved ones are taken care of, we get the life cover.
- Car insurance
For many of us, a car is our first big
debt purchase. It’s a source of pride and accomplishment. A car accident can happen as you drive out of the lot through no fault of your own but without insurance you will be paying for the car you can no longer use for the next 5 years. For peace of mind, you insure that car.
- Household insurance
Now you’re a home owner. Congratulations!! You hope and pray that no one breaks into your home/ damages your property/ there’s no fire/ etc etc so you insure that place quick quick! If you thought paying for a car you don’t have is a nightmare, imagine paying for a house you can’t live in with today’s property prices!
- Luxury insurance
This is not an actual terms but it’s what I call insurance for items like sunglasses, laptops, cell phones, your great granny’s antique vase etc. Items that hold a high material value and that we want to protect.
All of these types of insurance can easily add up to over R10k a month. We add it to our budget and work around these ‘fixed costs’ for the rest of the month.
What are you forgetting though?
As a parent, what are your most precious possessions?
(I hope you answer ‘My kids’ or this is going to get awkward really fast)
Exactly. Your kids.
There is no way to protect our children from the dangers of the world all the time but there is a form of insurance that will keep them safe at a fraction of one months medical aid payment. You won’t even need to pay monthly but your child will receive the benefit almost daily. This insurance will usually only require two payments and those payments are determined by your own budget. What am I talking about?
A CAR SEAT.
I am not going to preach about why your kids need a car seat because they are YOUR kids and I shouldn’t need to convince you to keep them safe. Instead, I’m going to leave a few facts here that will hopefully get you to buy that booster seat that you didn’t know your 6 year old needs until he/she is 12.
Don’t be the parent who could have chosen differently. This is a regret that you will never be able to get over.
For more information on car seats and car seat safety, visit #CarseatFullstop