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Category:
South Africa
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Insurance
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Short Term
Insurance
About Short Term Insurance
Short term
insurance has often been considered to be the ‘baby’ of insurance
policies but it is actually a very useful innovation that has
assisted millions of South Africans with the type of coverage that
they need without incurring too many costly premiums or other long
term responsibilities. So what is Short Term Insurance and how
can it help you?
Short term
insurance is literally an insurance agreement that is taken out
between a policy holder and the insurer, and is only active for a
limited amount of time – or rather, is flexible according to your
insurance wants and needs. What this means is that you can
insure your person, your car, or even your household objects on a
year to year basis or other short term period based on your dynamic
changing environment. Insurance companies understand that not
everyone wants the responsibilities of staying committed to one
lifestyle, one location and one car for the rest of their lives and
have therefore come up with this innovative way of providing
financial coverage for your treasured possessions.
Short term health
insurance plans provide an affordable option for every day
individuals who cannot afford the long term investment of paying off
a certain premium every month for the rest of their lives.
Short term insurance can be cancelled (unlike some health cover
plans) provided this termination is within the contract’s
stipulations, and some insurance companies even give you the option
to extend your short term insurance for an additional time period
once it has reached the end of the contract to make things easier
for you.
Short term car
insurance, for example, is an affordable way to insure your car
against theft, damages or accidents (depending on the type of short
term insurance that you select). Some companies even offer an
incentive program that pays you back after a certain period
of claim free insurance years. They allow you to take
advantage of the money you have paid into the scheme via your
monthly insurance premiums.
When you are
choosing short term insurance plans it is a good idea to get a
number of quotations based on your specific needs – compare at least
three different quotes from three different companies and check out
these criteria:
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How much must you pay? Is this the cheapest
option?
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What is the excess that you must pay? The
excess is the amount of money that you must pay in whenever you
claim on your short term insurance policy as a part of the insurance
agreement with your company. The lower the excess, the better.
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Is everything covered by your insurance policy
and do you need everything? For example, if you are taking out
car insurance you need to check whether the insurance policy covers
accidental damage, theft or third party coverage. Do you need
all of these options?
Short term
insurance is a great way to get the reassurance that your
possessions (and health!) are safe at all times without being tied
to life-long commitments and responsibilities.
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