Household and car insurance - essential cover you can't ignore
When it comes to buying a home or car you most likely would need financing. Since These two assets are probably the most expensive assets you own, so it's vitally important to make sure that you protect these assets from any risks. Hence the importance of having the right insurance cover in place says FNB expert Eunice Sibiya.
These are the three mopst important types of insurance you need when you are buying a house.
Life Insurance: You need life insurance that matches or exceeds the cost of the bond you're applying for.The reason you need this is to ensure that if something unfortunate does happen to you, the cost/balance of your bond would be settled. With the right insurance, the loved ones you leave behind will have a place to call home.
Household cover: Once you have life insurance in place, insuring the building, the brick and mortar, is the next step. Rebuilding your home after it is gutted by a fire, flooded by a burst geyser or any type of accidental damage can be financially destructive.
Contents of the house: Then it's important to cover all the assets that you have in your home. Should something happen to all the valuables that you have in your home, you need to be able to replace them without denting your pocket.
"You do not need life insurance to cover a car, however you can make sure that you have insurance that covers all your debt should something happen to you"Eunice Sibiya, FNB Head of Consumer Education Program
According to the Automobile Association of South Africa, there are 11.4 million registered vehicles on our roads today. The shocker is that between 65% and 75% of these cars don't have insurance. It's important to make sure that you have adequate car insurance should anything happen to your car. From minor bumper bashes, to hail damage or if you should lose your car from an accident or theft says Eunice Sibiya.
Listen to the full audio below
FNB Expert Ester Osche wraps up the #BeFinanciallySmart feature by highlighting some important techniques you need to adopt to be well on your way to financial freedom.Read More
For the past few weeks, the Be Financially Smart experts have been delivering excellent insights on saving and investing your money. It is an essential part of building your wealthRead More
How much time do you have left before your monthly income stops? The earlier you start saving for your retirement, the better!Read More
The Azania Mosaka Show kicks off Savings Month with a discussion about stock markets and long-term investing.Read More
FNB Expert Ester Osche discusses how to turn a property into a stable and rewarding long-term investment,Read More
We've all heard stories of people falling victim to poor investment decisions. Here's what you need to look out for.Read More
Head of Advisory Channels at FNB Esther Ochse takes a closer look at ways to help you learn to save and invest.Read More
Do you know how much your assets are worth and if you're paying too much for your insurance cover? FNB Expert Eunice Sibiya weighs in.Read More
Do you tense up when you think about your insurance cover? Unfortunately, turning a blind eye to your insurance cover is not an option…Read More
Most of us think about insurance as a thorn in the side of our budget however it's important for our financial wellbeingRead More