What is Short-Term Insurance and How It Helps to Protect Your Wealth
Crime, political uncertainty, health risks, economic change, the risk of vehicle accidents, and unforeseen environmental risks can all have a detrimental effect on your finances. It takes a single event for which you have not financially prepared or insured to risk your wealth. It is even possible for that event to cause your bankruptcy or cause such a blow to your finances that it will take years to recover. This is where short-term insurance comes in. This type of insurance covers you for unforeseen risks, thereby helping you to stay prepared and to have the costs of the risk covered.
Types of Short-Term Insurance
Unlike life cover, short-term insurance covers you for risks over the short-term like:
- Professional liability
- Personal injury
Many other risks can be covered. To simplify the explanation, it entails all cover types other than life cover, which is a long-term cover.
How It Works
The assets to be insured are assessed. The insurer provides a quote based on the risk profile of the applicant, the percentage of cover, the value of the assets, etc. If the applicant accepts, a monthly premium is payable for the agreed cover. In the event of the incident against which the insured party is covered does occur, then the policy-holder claims from the insurer. An amount is paid out as per the insurer’s policy.
How Does It Help You and How Do You Choose the Best Cover for Your Needs?
Whenever you purchase an expensive asset like a car, boat, or truck, or immovable property like a house, you make a substantial investment. You don’t want to risk damage or loss of the asset because of, for instance, theft, fire, or flood.
The only way to protect assets is to either put money away to cover the risk or to pay a monthly premium, making it affordable to cover the risk. If you choose to save up to cover the risk, you have to be able to cover the cost of replacement of the asset should it be completely destroyed or lost due to an incident. With short-term insurance, you only pay a small premium to have the entire replacement value or true value of the asset covered.
Choosing the right cover for your needs – not based just on the lowest premium but what you need covered – is essential. To this end, we recommend consulting with one of our financial advisers on the best possible package at the lowest possible cost to you.
Get Expert Help Today
For one, we analyse your cover needs and then recommend the appropriate cover. It is of no use to pay extra on cover benefits you will not need or use. As such, you know that we have your best interests at heart. Should your coverage needs change, you can consult with our team to provide you with guidance and solutions to meet the new requirements. Apart from the short-term cover, we offer business assurance and life cover options and guidance.
Don’t risk your financial wealth by going without the right short-term insurance. Get in touch for help in finding the best cover for your needs.