Black Friday specials? Insurance isn't a deal, it's a decision

It's November and Black Friday specials are everywhere. Even important aspects like short-term insurance are being touted as 'on special' or 'lowest price ever'. But your insurance cover is more critical than a dazzling discount deal, and requires careful consideration if it's going to work for you.

Short-term insurance is a vital part of your personal finance and risk management planning. Focusing only on the lowest premium or a special discount misses the core purpose of insurance, which is protection and financial security.

It's also important to note that discounted cover offering lower monthly premiums normally comes with exclusions or bigger excess payments, which you could battle to pay when the times comes to claim. That is usually the time that you can least afford massive financial burdens.

Your broker can help you negotiate the best terms for your individual situation, including premiums and excesses that fit your lifestyle and your budget.

Short-term insurance fundamentally helps you build financial resilience and preserve your wealth. It enables you to safeguard your savings by protecting you financially in the event of an accident, home fire or wildfire, home invasion or extreme climate-related disaster.

These are events that you wouldn't be able to pay for out of your own pocket without dipping into, or possibly depleting, your savings. This derails your long-term financial and savings goals, and can land you in debt.

Black Friday insurance deals always come with fine print, most of which protects the insurer but can leave you as the client exposed and vulnerable.

Working with a broker on a correctly structured insurance policy ensures there are no hidden clauses or exclusions. Everything is transparent and you know exactly what you're paying for and what you're expected to do in the event of a claim.

This not only ensures better protection for you, your family or your business, but better financial protection for your current savings and future wealth as well.

It's commonplace for insurance to be viewed as grudge payment. This is what prompts consumers hunt down the best deals and discounts.

The reason for this is that most insurance clients don't perceive any immediate benefit. They duly pay their monthly premiums but feel that they get nothing in return. Some people will never claim from their insurance policy or claim so infrequently, it feels like the policy is not a worthwhile investment.

While a major event might seem unlikely, the statistics show that risk is a daily reality. The financial peace of mind that sound insurance cover provides allows you to enjoy your life with less anxiety around unpredictable events.

Choosing the right short-term insurance is not about saving a few rands a month, it's about securing your entire financial future.

Instead of looking for deals or price cuts this Black Friday, rather take the time to check your insurance policy ahead of the end-of-the year rush. Check the extent of your cover, your excess and any exclusions so that your monthly premiums really are money well spent.