10 Aug Short-term insurance and the younger generation
By Somthemba Makinana, Apio Group
There is a misconception that has driven the younger generation to perceive insurance as a luxury purchase. The common idea is that “if it’s not cheap, then I’d rather not have it”. False.
You need insurance more than you think when you are younger especially when trying to establish your financial independence!
Insurance covers the risk of you losing what you initially own. It places you in a safer position and allows you to replace stolen or lost items and repair damaged items.
The reality is that the younger generation cannot afford to suffer significant losses as they don’t have the financial means to recover. However, the majority believe that insurance is unimportant. In certain cases, some people opt to have a cheap cover that is not fully comprehensive as opposed to being fully covered. The cheapest is not necessarily the best!
Of critical importance is insurance cover for your vehicle, cellphone, watch, camera and also any contents you may have in your home. These assets are typically the first ones you ever purchase when young, so safeguarding them against any potential losses should not be overlooked.
The older and mature generations invest in valuable items which they have accumulated over the years and therefore prioritise covering their assets as much as possible.
Younger generations have less experienced drivers and are not as pedantic about their possessions, so they are in a higher risk category, making insurance even more important!
In conclusion, being a younger individual does not take away or lessen the importance of you having insurance. Rather consider tightening your belt and find ways to include insurance in your monthly budget. Consider working with a broker who will advise how best to approach insuring your assets and risks, helping you to informed decisions.
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