Tips to help you afford your insurance premiums
Many
South Africans have to adjust to doing more with less because of rising
interest rates, fuel,
electricity and food prices. Since January this year, the South Africa
Reserve Bank (SARB) has raised interest rates by a combined total of 75
basis points.
With inflation continuing to rise beyond expectations and another looming increase in petrol price, consumers could
be facing tough times ahead.
CEO
of FNB Life, Lee Bromfield says what they usually see during tough
economic times is that people tend to react
by cutting back important expenses such as life or funeral cover, to
minimise financial pressure. He says this unfortunately exposes people
to an even bigger risk.
“It
is not ideal to stop paying your life or funeral cover premiums because
you could lose all your benefits, with
no refund of the premiums you have been paying since the beginning of
your cover. Look at other options to help you save a bit more money to
afford your premiums and other household necessities.”
Bromfield shares the following useful tips for people who are under financial pressure:
Subtle lifestyle changes
Avoiding peak-hour traffic or choose the most cost-effective public transport to get to work. Instead of being
stuck in traffic for more than an hour, trying leaving earlier than usual to get home quicker and save on fuel expenses.
Shop wisely
Always pay attention to retail specials for household necessities such as food. Sometimes it is cheaper to buy
certain goods in bulk to last you a few months.
Pay attention to loyalty scheme benefits
Nowadays, almost every retailer has some kind of loyalty programme. Even local banks reward people for using their
cards instead of withdrawing cash. Familiarise yourself with how these programmes work to be able to save a bit more.
Limit wastage
Make your family (especially your kids) aware of the need to make every cent go a long way. Instead of buying small
lunch packs at school, encourage them to prepare their lunch and snacks at home.
“With
better financial discipline, you can still afford to pay your life or
funeral cover to avoid risking your
family’s financial future. For now, consumers have to cope with tough
times and only those who make better decision will survive the current
period,” says Bromfield.
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