WEBVTT - Finance: The importance of short-term insurance

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<v Speaker 1>Because some journeys are better taken together. Let's walk the talk.

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<v Speaker 1>Seven eight minutes nine is two five o'clock. Let's talk

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<v Speaker 1>about the importance of short term insurance. Serena Johnson is

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<v Speaker 1>joining me on the line now short term insurance specialists

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<v Speaker 1>that consult by momentum. Serena, very good morning and welcome

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<v Speaker 1>to the show.

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<v Speaker 2>Hi Africa, thank you very much for having me.

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<v Speaker 1>I know that during COVID times, when people's earning potential

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<v Speaker 1>was severely restricted, one of the first things that went

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<v Speaker 1>was short term insurance. And I think some people who

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<v Speaker 1>perhaps continue to have a very tight wallet have not

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<v Speaker 1>gone back to purchasing short term insurance. Why is it

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<v Speaker 1>important to have short term insurance?

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<v Speaker 2>So? I think in South Africa, every rand counts on

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<v Speaker 2>things like range, school fees and croceeeds, and most families

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<v Speaker 2>are living from paycheck to paycheck, as you much know,

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<v Speaker 2>and not much is less for saving. So when budgets,

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<v Speaker 2>titan insurance often goes first, and it's seen as the

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<v Speaker 2>grudge purchase, like paying for your membership you never use.

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<v Speaker 2>I think a lot of people fail to realize that

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<v Speaker 2>it isn't a luxury, It's actually a safety net that

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<v Speaker 2>keeps your life running when everything.

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<v Speaker 1>Else falls apart, because there are some people who will go,

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<v Speaker 1>I'm going to be paying the short term insurance for

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<v Speaker 1>years and years and years and years and years and

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<v Speaker 1>then nothing happens.

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<v Speaker 2>Yeah, I mean, I mean, I think a lot of

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<v Speaker 2>people think that being careful helps, and I do think

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<v Speaker 2>it helps, but I mean accidents, storms, breakings. I don't

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<v Speaker 2>think they really check how contiously are. You could be

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<v Speaker 2>driving perfectly only to be hit by someone else, or

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<v Speaker 2>you could come home to a broken window, and savings

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<v Speaker 2>can help. But if your car is written off or

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<v Speaker 2>your home is damaged, I don't think that wouldn't that

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<v Speaker 2>would be enough, Because I mean insurance. I think it's

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<v Speaker 2>fulls the gap we caution even saving.

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<v Speaker 1>For short Yeah, and I think it's absolutely one hundred

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<v Speaker 1>percent what you say. You could be as cautious and

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<v Speaker 1>care for a driver, but it is a driving behavior

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<v Speaker 1>of a fellow driver on the road in South Africa

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<v Speaker 1>that might result in damage to your property for example.

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<v Speaker 2>Or yes, most definitely.

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<v Speaker 1>Yeah, what are the biggest financial risks that we face

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<v Speaker 1>if we do not have appropriate short term insurance cover?

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<v Speaker 2>So we think of it as you know, imagine waking

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<v Speaker 2>up and your driveways empty, your carbon or coming home

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<v Speaker 2>to a living room that's been completely ransacked. And these

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<v Speaker 2>aren'tre I mean hundreds of vehicles disappear every day across

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<v Speaker 2>the country through theft or hijacking, and it's leaving families

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<v Speaker 2>standard and scramming to find a replacement on short notice.

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<v Speaker 2>And then you consider home hit by sudden disasters like

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<v Speaker 2>floods or fires that wipe outing in an instant I

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<v Speaker 2>mean one devastating flood if you think of it in Casenen,

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<v Speaker 2>I think it was April twenty twenty two. Thousands of

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<v Speaker 2>homes are destroyed, and many without any insurance, and it

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<v Speaker 2>forced families to rebuild from scratch, with nothing really to

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<v Speaker 2>fall back on. And it's never just the one thing.

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<v Speaker 2>I think you lose your car or your home and

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<v Speaker 2>suddenly you're borrowing money, missing work, paying school fees late.

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<v Speaker 2>It's not just I think it's not just about replacing

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<v Speaker 2>these things, but it's your routine, your peace of mind,

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<v Speaker 2>and your ability to keep going.

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<v Speaker 1>And then the all important questions are on how much

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<v Speaker 1>insurance is enough, because there are arguments that can be

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<v Speaker 1>made that some sectors of society are possibly over insured.

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<v Speaker 2>Yeah, I mean definitely. So I mean I think I

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<v Speaker 2>would consider insurance as like part of your essential so

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<v Speaker 2>right alongside rent and food and electricity and transport. I mean,

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<v Speaker 2>and has cast claims many families you know they tried

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<v Speaker 2>to from the extras, but I mean, in my opinion,

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<v Speaker 2>I think insurance should stay. It's not optional, it's vital.

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<v Speaker 2>And with everything from groceries to petrol becoming more expensive,

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<v Speaker 2>I mean, you need to make every rank count. So

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<v Speaker 2>that means deciding what you must protect, so your car,

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<v Speaker 2>your homes, the gadgets that help you work. I think

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<v Speaker 2>these are the things that you would want to get

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<v Speaker 2>covered first and would say to make it work, I mean,

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<v Speaker 2>just imagine setting on one treet, maybe fewer takeaways or

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<v Speaker 2>streaming services, and that small monthly saving can fund your

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<v Speaker 2>premium and preserve your whole routine, you know, for one

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<v Speaker 2>of those things, and when life surprises you a visa

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<v Speaker 2>verse or your car gets damaged, that insurance is what

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<v Speaker 2>keeps your world running without borrowing or compromising on both.

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<v Speaker 2>And smart budgeting means reviewing regularly. You know, if you

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<v Speaker 2>ask somebody that has insurance and consult with your advisor.

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<v Speaker 2>I think in that one of the things that consult

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<v Speaker 2>does really well is that putting advice first. So if

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<v Speaker 2>your premiums rise, just your exist or fund the qualities

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<v Speaker 2>to get a better rate and that way you stay

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<v Speaker 2>covered in control of your finances.

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<v Speaker 1>And it's always important to know what you actually covered for.

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<v Speaker 1>A friend of mine took out cover for her car

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<v Speaker 1>thinking she could do all sorts of things, and then

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<v Speaker 1>she needed to change her tires and then she was told, oh, sorry,

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<v Speaker 1>this is not covered. It was a surprise, and definitely

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<v Speaker 1>she still had the resources to be able to change

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<v Speaker 1>her tires. I mean it's a fancy German car, so

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<v Speaker 1>it wasn't a cheap set of tires, but she just

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<v Speaker 1>didn't know that it was not covered. And it's important

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<v Speaker 1>to know what you actually covered for and more importantly

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<v Speaker 1>what you're not covered for.

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<v Speaker 2>Yes, definitely, I mean you want to seek the professional advice,

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<v Speaker 2>you know, that's where insurance grow. Insurance brokers can help

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<v Speaker 2>tailor planet fits your needs and budget and do all

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<v Speaker 2>the explaining, you know, that's what they is. Therefore, they

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<v Speaker 2>have access to multiple insurance and they can negotiate better

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<v Speaker 2>deals on your behalf, ensuring you get the best value

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<v Speaker 2>for your money. No extras, no everspending. Yeah, I mean

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<v Speaker 2>remembering insurance isn't an expense, brilliant investment in your peace

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<v Speaker 2>of mind. So talking to someone and taking these small

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<v Speaker 2>steps I think it can definitely secure your coverage without

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<v Speaker 2>straining your finances.

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<v Speaker 1>Sarona, thank you very much for your time this morning.

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<v Speaker 1>Thank you for reminding us why it's important actually to

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<v Speaker 1>have short term insurance. Sarena Johnson is a short term

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<v Speaker 1>insurance specialist that consult by momentum