Saving money on the wrong things can cost you dearly
With millions of people struggling to cover essential costs, highlighting the dangers of skimping on insurance may seem disrespectful. Psychologists have proved that humans have a built in ‘it won’t happen to me’ wiring in the brain. Unfortunately though, bad things do sometimes happen to us and there is no doubt that there could be an unacceptably high price to pay for being under insured, or even worse, dropping insurance completely.
Saving money on insurance in the short term can leave us helpless and vulnerable in the long term. In the end, making the wrong decisions on how to save money could lead to much more severe financial hardship in the future. In a nutshell, insurance is one cost we cannot afford to live without.
In simple terms, if you can’t replace something (home, car, your income, etc.) without assistance, it should be insured. This includes your income in the event of a disability or death. Insurance can be viewed as an unnecessary expense, but if you gamble that you won’t need it and lose, you’ll find yourself in big trouble. This may seem a pessimistic view, but just consider what could happen if you don’t have insurance in place:
It is a legal requirement to have 3rd party insurance on a motor vehicle as a minimum, so ultimately if there was an accident without insurance, there could be a criminal prosecution alongside heavy financial penalties, especially if there were third party injuries. Even if there was no one else involved, the result could be that the car can no longer function. Without insurance for a replacement, the outcome could mean it is impossible to get to work, so income could be threatened. Insurance for an average car of US$5,000 could cost as little as US$240.80 per year. Check our quotes in a matter of minutes on www.zimselector.com.
The main consideration is the ability to keep a roof over your head and protect your family. In the worst case scenario of a fire, flood or gale where your home is too badly damaged to live in, how would you cope without insurance? Even if you have insurance, but have not insured your home for the correct rebuilding cost, the insurance settlement may be well short of the amount needed to restore your home properly. And don’t forget those all important home contents which may be stolen in a burglary or accidentally broken! An average high density home of US$35,000 could cost as little as US$49.50 per year and for a low density home valued at US$150,000 could cost as little as US$184.50 per year!
One of the worst things to contemplate, is leaving those you care about with financial worries if you die. Life insurance gives you instant peace of mind. Without life insurance, those left behind to mourn could also have the worry of not being able to cover all the household expenses alongside the trauma of not being able to fund the funeral. Also, getting funeral cover for your dependants is the best way to ensure that giving them a proper send off does not create a cash flow crisis for you.
For many Zimbabweans that are living in the diaspora, or those living at home with relatives in the diaspora, funeral repatriation costs can be as much as US$1,000 from UK and significantly more from Australia or USA. This is not an easy sum to cough up at short notice and what could be worse than delaying the funeral of a loved one or worse still burying them in a foreign country against your wish because you don’t have the means? This need not be a worry for you if you take out the right funeral cover, and on www.zimselector.com we have several for you to choose from.
We don’t plan when we fall ill, neither do we pick the ailments that we fall ill with! And with the costs of medical services and drugs, you would be very wise to ensure that you don’t live with the guilt or regret of feeling “if only we had faster or better medical attention” so that the illness could have been treated in time or better still saved the life of a loved one.
Over half of travel insurance claims are related to medical issues, with an average claim being around US$1,400 (£900), although many are much higher. If you or your family are away from home and need urgent and expensive medical attention, what would you do if you did not have the right insurance in place? Is it really worth the risk?
These are just some examples of the risk you take by not having the right insurance in place. Granted, insurance has a cost – but equally the cost of not having the right cover in place could be so very much higher. Insurance can be much cheaper than you think. It is essential to shop around and compare both the cost and the level of cover. We believe that people should have the right insurance in place. That’s why we developed ZimSelector.com. From the convenience of your home at any time of the night or day, you can compare providers and buy the right policy. Instant peace of mind!