Do you understand how your insurance works? Here's how to be savvier with your insurance policy
There are numerous stories of people who experienced incidents they believed were covered by their insurance, only to have their claims denied.
Picture: Pixabay
Gugs Mhlungu spoke to resident certified financial planner, Paul Roelofse.
Listen to their conversation in the audio clip below.
Insurance is a crucial tool for protecting ourselves, whether it be for medical, vehicle, or household coverage.
However, many people lack a clear understanding of how insurance works.
There are numerous stories of people who experienced incidents they believed were covered by their insurance, only to have their claims denied.
"It drills into really understanding what you are actually covered for. What really becomes a difficult portion of that particular problem is that the terms and conditions are so technical."
- Paul Roelofse, certified financial planner
"The model of insurance is that the premiums that come in must be more than the claims that are going out, otherwise it's not a viable proposition for the insurer at all."
- Paul Roelofse, certified financial planner
Roelofse emphasises that understanding how insurance works can lead to more informed and reasonable choices.
He advises that to be more savvier with insurance policies, you need to remember the following:
- You get what you pay for – cheap is not necessarily better
- Check to see what benefits are actually provided for
- Declare everything at application – rather overstate than leave things out
- Don’t hide anything – be honest and transparent
Roelofse says it's better to be rejected on application and save all those premiums than start a policy and be rejected when you have a claim.
"Dare I say, the contract does kind of lean more on the side of the insurer more than it does on you and your obligation is to understand that. That's the reality."
- Paul Roelofse, certified financial planner
Scroll up to listen to the full conversation.