Ensure that you are covered this Easter weekend
31 March 2010 | Company News & Results | Old Mutual | Old Mutual
Due to traffic volumes increases during the Easter weekend, there is an increased risk of accidents on our roads. The Easter 2009 Road Traffic Report states that there was an overall increase in traffic volumes on national roads of 142,259 vehicles (30,31%). The number of fatal crashes over Easter 2009 was 173 and the number of fatalities was 197. As the law stands at the moment, the Road Accident Fund Act limits the liability of the Fund in certain circumstances. It is said that the onus has now been placed on individuals to obtain sufficient personal accident disability cover.
Protection against death or disability resulting from car accidents, will give you peace of mind, knowing that you and your loved ones are taken care of financially should you fall victim to this event.
So in the process of making final arrangements for the holiday period, you should give thought to updating your existing cover or taking out cover if you don’t already have the necessary insurance.
“We don’t always want to think about the potential of accidents happening but it is a reality that happens more often during holiday periods when travelling is frequent. You need to ensure that your cover is updated and that you are adequately insured,” says Ursula Torr, Risk Actuarial Manager at Old Mutual.
It is important to check that your premium payments of your existing cover is up to date, if it is paid up it is advisable to get your payments up to date. If you do not get your premiums up to date you will risk having no cover whatsoever during this holiday period.
Apart from ensuring that your car is serviced and insured against accidents, you also need to have the necessary cover for potential lifestyle changing events. While medical schemes provide help in meeting the medical costs associated with accidents, surviving major accidents and paying for post-event services is a whole different ball game.
Disability cover will cover the costs of making adjustments to your lifestyle as a result of surviving the accident. The costs may include physiotherapy, purchasing and maintaining prosthetics, replacing your income if you need extended periods off work to recover, modifications to your house or car and peace of mind that medical shortfalls can be covered. You may be completely disabled and unable to work – adequate cover will ensure that you are covered so that you may receive an income.
Life cover is crucial to ensure that your loved ones are taken care of in the event of your death. It will help to ease the burden of debt such as an outstanding bond, estate duty and other costs upon your death. Death benefits also provide an income when you are no longer able to provide your family with an income. If you are a business owner or you are a partner in a business, it can help your family or business partners to continue running the business without added capital strain on your death.
It is also important to consider your options of the type of cover that is available. The cheaper monthly premium may not necessarily be the best option for you. Often cheaper cover does not always match the relevant risks. And often lower costs mean you have fewer benefits.
Read the fine print when taking out cover to ensure that you know exactly what you’re paying for. Although the cheapest option may be the most affordable initially, it may have a higher premium escalation rate that may become the more expensive option later on.
You also want to check the pay-out percentages of the company that you are insured with. Certain insurers may offer cheaper premiums but have a very low pay out percentage.
The whole reason why you take out cover is to ensure that when accidents happen, you and your loved ones are taken care of. You also may need to rather have 100% payout when you claim as opposed to receiving a percentage based on the severity of your situation
For example: Life assurors may offer tiered payment according to “Whole Person Impairment” tables. This table looks at what percentage of the body is impaired and as a result, what percentage should be paid out. Other life assurors may not base claim payments on the severity of the condition that led to the claim.
“It is important to sit with your financial adviser who can assess your needs and provide you with the cover that best suits those needs. Your financial adviser will also be able to explain any exclusions that may be applicable to your insurance. You should remember that life and disability cover should form part of a holistic financial plan,” concludes Torr.
Very importantly, drive safely.
