Tips to help you afford your insurance premiums

4/20/2016

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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