See insurance as a grudge purchase? Think again!

Short-term insurance might feel like a grudge purchase, however viewing it differently might just change the way you see these necessary monthly payments.

For a start, your short-term insurance policy gives you peace of mind. You don't need to worry every time you step foot out of your home, into your car or into your office that something could happen. You have enough to think about; worrying about accidents shouldn't be one of those things.

When you have the right insurance policy in place, you have a permanent safety net beneath you. Living and working stress-free makes paying that premium once a month worthwhile.

In addition, your vehicle, home and business are probably the largest financial investments you've ever made. You have the responsibility of protecting those assets from accidents, damage, theft, and the effects of climate change.

That feels like a daunting task to do all by yourself. That's where short-term insurance comes in. It helps you secure your largest investments by having access to funds and qualified professionals, when you need them, to repair or replace damaged or stolen insured items.

In this way short-term insurance protects your investments, ensuring they maintain their value. It also protects your savings, as you don't need to dip into your own pocket to pay for damages or replacements when your insurance policy does that for you.

Speaking of the financial impact, the cost of replacing or repairing valuable assets like cars, electronics or home contents can be overwhelming. Insurance spreads this risk over time with manageable premiums. So although you have to pay a little every month, this is much easier to manage than facing a huge, sudden expense all at once.

This really speaks to the heart of the issue with grudge purchases: at the time we perceive the risk of something happening to be low. While that might be true, and unexpected events are uncommon, when they do happen the fallout is significant.

Low likelihood but high impact means your life taking an unexpected knock. In that moment, can your finances afford to take a massive knock too?

If you look over the long term of having short-term insurance, you'll notice that the incidences when you claim from your insurance occur more often than you think.  Vehicle accidents, bumper bashings, cracked windscreens, petty theft, pool pumps that suddenly stop working, geysers that burst, alarm systems that fail, gate motors that seize, burst water pipes...are all unexpected events that will at some point happen, it's just a case of when.

Natural disasters are also increasing in South Africa - something relatively foreign to most citizens. This has seen households unequipped to handle extreme weather and the damage it brings. Paying monthly for your short-term insurance allows you to quickly, and affordably, recover from these unpredictable events.

Instead of seeing insurance premiums as money 'lost' each month, rather see them as an investment in security. In effect you're paying for peace of mind and financial protection for times when you'll really need it most.