Enjoy your break – with peace of mind

Unfortunately, this is also one of the deadliest times of the year on South Africa’s roads. Preliminary statistics released by the Department of Transport in 2013 indicate that there were more than 200 crashes resulting in 241 fatalities over Easter last year.

"The last thing we want to do is fear the worst,” says Jaco Gouws, Risk Actuarial Manager at Old Mutual. "The reality is that tragedy can strike any family, so it’s incredibly important to make sure that you are covered should something happen.”

But what about the Road Accident Fund? "South Africans cannot rely on this fund to financially support their families if something happens to them,” says Gouws. "Claims can take years to process and even once they are, the amount paid is seldom enough, especially for a family that has become used to a certain standard of living.”

Before you make your final holiday arrangements, be sure to follow a safety checklist. This should include ensuring that your car is serviced and insured, and that you are adequately covered for death and disability.

Also, remember to check that the premium payments of your existing life and disability cover are up to date and that your current cover is still sufficient to meet your financial needs. If you don’t have the necessary insurance, now is the time to consider taking out cover. If you do not get your premiums up to date, you and your family risk having no cover during the Easter holidays.

Protection against death or disability resulting from car accidents will give you peace of mind, knowing that you and your loved ones are financially provided for should the worst happen to any of you.

Life cover will help ease the burden of debt such as an outstanding bond, estate duty, capital gains tax and other costs. "The lump sum paid on your death can also provide your family with an income. If you are a business owner or a partner in a business, it can help your business to continue running without added capital strain.”

"Disability cover will help with the costs of making adjustments to your lifestyle as a result of being disabled in an accident,” says Gouws. "While medical schemes provide help in meeting the medical costs associated with accidents, surviving a major accident is a different ball game. Costs may include 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 when the medical fees exceed the medical aid payouts and you do not have gap cover. Even if you have disability cover, make sure that it covers you from being temporarily off work as most options will only pay if you are permanently unable to work.”

Also check the pay-out percentages of the company that you are insured with, says Gouws. Certain insurers who offer cheaper premiums might also have a very low pay-out percentage. Cheaper cover does not always match the relevant risks. And often lower costs mean fewer benefits.

"It is important to sit with your financial adviser, who can assess your needs and provide you with the cover that best suits your specific life stage needs. Your financial adviser will also be able to explain any exclusions or shortfalls that may be applicable to your insurance. And always remember that life and disability cover should form part of a holistic financial plan,” says Gouws.