Your insurance policies can produce savings and wealth when they are managed well.
Eat your vegetables! A statement you probably heard in your younger days, followed by your exasperation. At the time, it was a normal reaction; you could not know what your wise parents knew; that those greens are essential for your growth, and building good habits early will lead to a long healthy lifestyle.
Well, in that same spirit: keep an eye on your insurance portfolio! Your home and car insurance portfolio is not only a tool to manage your financial risk but an opportunity for you to create wealth. It would be best if you took the time to understand what you have, what you need and what is on offer in the market.
Adapt your coverage to every change
Insurance is not a once and done thing; you must continuously cultivate it. Significant and even small changes in your life or business can profoundly affect your insurance in the long term. For example:
Adding a tracking device to your vehicle or housing it in a closed garage can reduce your car premiums.
Any new asset in the home or at business needs to be covered.
Right now, one of the biggest shifts in business is the work-from-home trend. It has shifted the work environment from a single controlled environment to sparsely located homes where the business has less control. This raises questions about where coverage begins and ends. For example, employees have acquired new equipment and tools to work-from-home; so does your insurance cover extend to the work-from-home environment and which insurance product (home, car or business) is responsible for it?
It is important to keep track of the changes in your life and business. That way, you can ensure that your policies match your current needs. It is not in your best interest to be underinsured or to overpay premiums.
Get more value from your insurance policies
Insurance providers have an interest in making your life simpler and safer. So, they are continuously improving their short-term value-added services. These services are at no extra cost to you or at a huge discount to fulfil needs in between major claims. For example, PPS offers its clients a value added services that provides:
24-hour medical assistance
fine payments and alerts
Like many people, you probably purchased an item – such as a vehicle – some time ago and were likely offered insurance with that purchase. At the time, you might not have had the energy or time to go shopping for ideal coverage, so you signed up for what was on offer. Many insurance companies rely on clients’ failure to look for a better deal to sell you what they have on offer. Companies that sell homes, cars, cellphones, vacations, or business equipment, to mention a few, use this tactic to increase their sales, whether the cover on offer is the best in the market or not.
Turn insurance premiums into investments
Your insurance premiums can do more than lower risk; they can become a source of wealth. Insurance companies are essentially a pool of investments from which policyholders can withdraw for claims and shareholders can benefit from in the form of profits.
PPS is an insurance company operating on the ethos of mutuality. That means, unlike other insurance companies, members cannot only claim from PPS, but if they hold qualifying products, they can share in the company’s profits made from operations and investments.
A Profit-share Account is automatically opened for all qualifying risk products. Each additional qualifying product that you hold – such as a PPS Short-Term Insurance product – will earn you more profit allocations through the PPS Profit-Share Cross-Holdings Booster.
There are no extra fees or paperwork involved when a Profit-Share Account is opened, and your claims or health status does not affect your allocation; you only need to hold a qualifying product(s).
Future growth comes from today's savings
The future you want starts with what you do now. Take the time to manage your insurance portfolio, and it will keep your assets safe, family protected and business running smoothly. Start today, revisit your policies and understand your coverage. Ensure that you:
Adapt your insurance policies to any changes in your life, habits or business operations;
Make the most of the free or discounted value-added services that your policies give;
Make sure you search for and get the best one for your circumstances. Not all insurance products are the same; and
Ensure that you are fully covered and understand the terms and conditions of the policy.
Want to maximise your earning potential? By adding PPS car or home insurance to your existing PPS portfolio, you can start earning additional Profit-Share immediately.
PPS is a licensed Insurer and authorised FSP.
Profit Share is only applicable to Personal Lines policies.
Ts & Cs apply.
Disclaimer that the information on this article does not constitute FAIS Advice.