SHORT TERM INSURANCE
What is Short Term Insurance?
Short term insurance encompasses all types of insurance policies other than life insurance and includes vehicle, property, household, medical, personal liability, gap cover, travel and business insurance. The reason why these policies are classified as short-term insurance is that your insurance needs in this regard will change over time. Unlike life insurance, short-term insurance is taken out only for the period that you have need of it. The amount of money that you will pay to your insurer at pre-arranged intervals is called a premium. This amount will be worked out according to your individual risk profile. For example, when insuring your car, the insurance provider will generally investigate your age, gender and driving record; the value of the car; where the car is parked and whether it has anti-theft devices in place. These factors will determine what premium you should pay. The greater your risk profile, the higher your premium will be.
Why do you need Short Term Insurance?
This insurance option has provided many South Africans with the opportunity to cover the financial risks to their material possessions and those of their loved ones without paying hefty premiums. Overall, short-term insurance is a valuable method of ensuring the security of your wealth and possessions without long-term commitment and large premiums. There are over 100 short-term insurers available to South African consumers. When looking for an insurance provider, it is recommended that you get as many quotations as possible and place your business with a reputable insurer. In this regard, it is best to make use of an insurance broker who will be able to present you with multiple options from a range of insurers.