Do you have a plan B for if your job ends, if you fall sick or when you’re grey-haired, 30 years from now? Sure, we know how to add and multiply, but how many of us know the importance of life policies, medical cover and exactly when one should make such purchases?
Read on to discover a list of great financial purchases that will not only launch you in to adulthood, but will make your life easier and your future far less stressful.
Medical aid is insurance that will cover you and your beneficiaries in the case of illness or hospitalisation. Your carefree twenties might be interrupted by a life threatening illness, or you get in to a major car accident? It’s for this exact reason that you need to have insurance which will provide healthcare when you don’t have the hard cash to pay for the best medical care.
Car insurance is basically an agreement between an insurer and yourself wherein they cover your losses in exchange for the monthly premium you pay them. You might think that your license qualifies you for best driver of the year, but things happen – you cannot control drunk drivers and other motorists on the road. Cover yourself so that you can still have your ride or replacement wheels in the case of an accident.
Life insurance is insurance that will give your chosen beneficiaries money in the case of your death or after a certain period. This will help you when you’re ready to purchase a house, because some banks insist that people who apply for car financing loans or bonds take out life insurance to cover their debt, in the case of their death. This might not be fair if you don’t have dependants, but your future self will be grateful. Some furniture companies will sign you up for life insurance when you make big purchases with them; so beat them to the chase.
Income/goods insurance is insurance that will pay you a monthly salary (for a stipulated amount of time) in the case of you losing your employment and thus your salary, and the latter is insurance for the contents of your home or bag that will help you replace certain items in the case of theft, fire or flooding.
