The Main benefit would be…. Peace of mind.
But there there are a magnitude of benefits from having insurance…
Insurance is a risk mitigation tool. You transfer your risk to an insurance company in exchange for a premium. So the benefit is if you incur a loss from an insured risk, the insurance company assumes all or part of that loss.
You have a few options on how to handle risk as you decide if you want insurance or not.
You can accept risk. If I wanted to sell insurance to protect everybody in Pretoria against being attacked by a Polar Bear I wound not sell very much. Most people would accept that risk.
You can try to lessen your risk. I could choose to take a bus or train rather than drive my car. By reducing the kilometers drive in my car I have reduced my risk of being in an accident.
You can give all or part of that risk to someone else (insurance). I pay an insurance company to assume some of my risk for medical expenses should anyone in my family get sick.
When my uncle went to the hospital for an operation that cost about R750 000.00 they only had to pay a little percentage of the total cost because they gave that risk to the insurance company for a monthly premium.
I don’t think most insurance consumers properly balance their risk to get the best coverage for their circumstance. They buy price instead of value. Consequently most people are paying too much for insurance and are under insured.
For instance, if you have insurance for your home and some one breaks in and steals all your electronics, you would not have to save for the next 10 years to replace everything, instead the insurance company would be able to pay out your claim in a week or two, because you have been paying your monthly premium.
Here is a list of some of the popular insurance companies in SA:
(AllLife offers life insurance to people living with HIV or Diabetes)(Long Term)
(Clientele is offering two cutting edge products: 1.The Hospital Cash Back Plan and he Lasting Dignity Cash Back Plan)(Medical Insurance)
(Pay As You Drive is the first personalized motor insurance in South Africa.)(Short Term)
(InstantLife.co.za is a new generation insurer offering products directly to our clients.)(Long Term)
(We Save You On Average 32% On Insurance Extremely fast turnaround times)(Short Term)