Speaker 1: Because some journeys are better taken together. Let's walk the talk.
Speaker 1: Seven eight minutes nine is two five o'clock. Let's talk
Speaker 1: about the importance of short term insurance. Serena Johnson is
Speaker 1: joining me on the line now short term insurance specialists
Speaker 1: that consult by momentum. Serena, very good morning and welcome
Speaker 1: to the show.
Speaker 2: Hi Africa, thank you very much for having me.
Speaker 1: I know that during COVID times, when people's earning potential
Speaker 1: was severely restricted, one of the first things that went
Speaker 1: was short term insurance. And I think some people who
Speaker 1: perhaps continue to have a very tight wallet have not
Speaker 1: gone back to purchasing short term insurance. Why is it
Speaker 1: important to have short term insurance?
Speaker 2: So? I think in South Africa, every rand counts on
Speaker 2: things like range, school fees and croceeeds, and most families
Speaker 2: are living from paycheck to paycheck, as you much know,
Speaker 2: and not much is less for saving. So when budgets,
Speaker 2: titan insurance often goes first, and it's seen as the
Speaker 2: grudge purchase, like paying for your membership you never use.
Speaker 2: I think a lot of people fail to realize that
Speaker 2: it isn't a luxury, It's actually a safety net that
Speaker 2: keeps your life running when everything.
Speaker 1: Else falls apart, because there are some people who will go,
Speaker 1: I'm going to be paying the short term insurance for
Speaker 1: years and years and years and years and years and
Speaker 1: then nothing happens.
Speaker 2: Yeah, I mean, I mean, I think a lot of
Speaker 2: people think that being careful helps, and I do think
Speaker 2: it helps, but I mean accidents, storms, breakings. I don't
Speaker 2: think they really check how contiously are. You could be
Speaker 2: driving perfectly only to be hit by someone else, or
Speaker 2: you could come home to a broken window, and savings
Speaker 2: can help. But if your car is written off or
Speaker 2: your home is damaged, I don't think that wouldn't that
Speaker 2: would be enough, Because I mean insurance. I think it's
Speaker 2: fulls the gap we caution even saving.
Speaker 1: For short Yeah, and I think it's absolutely one hundred
Speaker 1: percent what you say. You could be as cautious and
Speaker 1: care for a driver, but it is a driving behavior
Speaker 1: of a fellow driver on the road in South Africa
Speaker 1: that might result in damage to your property for example.
Speaker 2: Or yes, most definitely.
Speaker 1: Yeah, what are the biggest financial risks that we face
Speaker 1: if we do not have appropriate short term insurance cover?
Speaker 2: So we think of it as you know, imagine waking
Speaker 2: up and your driveways empty, your carbon or coming home
Speaker 2: to a living room that's been completely ransacked. And these
Speaker 2: aren'tre I mean hundreds of vehicles disappear every day across
Speaker 2: the country through theft or hijacking, and it's leaving families
Speaker 2: standard and scramming to find a replacement on short notice.
Speaker 2: And then you consider home hit by sudden disasters like
Speaker 2: floods or fires that wipe outing in an instant I
Speaker 2: mean one devastating flood if you think of it in Casenen,
Speaker 2: I think it was April twenty twenty two. Thousands of
Speaker 2: homes are destroyed, and many without any insurance, and it
Speaker 2: forced families to rebuild from scratch, with nothing really to
Speaker 2: fall back on. And it's never just the one thing.
Speaker 2: I think you lose your car or your home and
Speaker 2: suddenly you're borrowing money, missing work, paying school fees late.
Speaker 2: It's not just I think it's not just about replacing
Speaker 2: these things, but it's your routine, your peace of mind,
Speaker 2: and your ability to keep going.
Speaker 1: And then the all important questions are on how much
Speaker 1: insurance is enough, because there are arguments that can be
Speaker 1: made that some sectors of society are possibly over insured.
Speaker 2: Yeah, I mean definitely. So I mean I think I
Speaker 2: would consider insurance as like part of your essential so
Speaker 2: right alongside rent and food and electricity and transport. I mean,
Speaker 2: and has cast claims many families you know they tried
Speaker 2: to from the extras, but I mean, in my opinion,
Speaker 2: I think insurance should stay. It's not optional, it's vital.
Speaker 2: And with everything from groceries to petrol becoming more expensive,
Speaker 2: I mean, you need to make every rank count. So
Speaker 2: that means deciding what you must protect, so your car,
Speaker 2: your homes, the gadgets that help you work. I think
Speaker 2: these are the things that you would want to get
Speaker 2: covered first and would say to make it work, I mean,
Speaker 2: just imagine setting on one treet, maybe fewer takeaways or
Speaker 2: streaming services, and that small monthly saving can fund your
Speaker 2: premium and preserve your whole routine, you know, for one
Speaker 2: of those things, and when life surprises you a visa
Speaker 2: verse or your car gets damaged, that insurance is what
Speaker 2: keeps your world running without borrowing or compromising on both.
Speaker 2: And smart budgeting means reviewing regularly. You know, if you
Speaker 2: ask somebody that has insurance and consult with your advisor.
Speaker 2: I think in that one of the things that consult
Speaker 2: does really well is that putting advice first. So if
Speaker 2: your premiums rise, just your exist or fund the qualities
Speaker 2: to get a better rate and that way you stay
Speaker 2: covered in control of your finances.
Speaker 1: And it's always important to know what you actually covered for.
Speaker 1: A friend of mine took out cover for her car
Speaker 1: thinking she could do all sorts of things, and then
Speaker 1: she needed to change her tires and then she was told, oh, sorry,
Speaker 1: this is not covered. It was a surprise, and definitely
Speaker 1: she still had the resources to be able to change
Speaker 1: her tires. I mean it's a fancy German car, so
Speaker 1: it wasn't a cheap set of tires, but she just
Speaker 1: didn't know that it was not covered. And it's important
Speaker 1: to know what you actually covered for and more importantly
Speaker 1: what you're not covered for.
Speaker 2: Yes, definitely, I mean you want to seek the professional advice,
Speaker 2: you know, that's where insurance grow. Insurance brokers can help
Speaker 2: tailor planet fits your needs and budget and do all
Speaker 2: the explaining, you know, that's what they is. Therefore, they
Speaker 2: have access to multiple insurance and they can negotiate better
Speaker 2: deals on your behalf, ensuring you get the best value
Speaker 2: for your money. No extras, no everspending. Yeah, I mean
Speaker 2: remembering insurance isn't an expense, brilliant investment in your peace
Speaker 2: of mind. So talking to someone and taking these small
Speaker 2: steps I think it can definitely secure your coverage without
Speaker 2: straining your finances.
Speaker 1: Sarona, thank you very much for your time this morning.
Speaker 1: Thank you for reminding us why it's important actually to
Speaker 1: have short term insurance. Sarena Johnson is a short term
Speaker 1: insurance specialist that consult by momentum