As a professional, insurance is the pillar of your financial stability. Enter the new year with an understanding of how you can improve your personal and business insurance portfolio.
2020 has been an unforgettable year - the world literally stood still. Lives were lost, jobs vanished, business stalled, economies tumbled and life as we knew it changed in the blink of an eye. The world will never be the same again, that's certain, but you can prepare for the new year and beyond. As 2021 dawns, it offers you the chance to reset or charge ahead.
Organise your personal insurance
Have you paid attention to how comprehensive your insurance policies are? It's one thing to grab a policy when you are a young buck with all the vigour of youth, but as you get older, you realise your body isn't so bulletproof; you need something that goes beyond medical checkups and emergencies. You need to protect yourself against father time, hereditary ailments and work-related injuries or illnesses. Take the time to review your personal policies to ensure that you are adequately covered against any eventuality.
Start with your life policy. You may be starting a family, or have one already – they need to be cared for, should you no longer be around. If you rely on your company's policy, you may want to increase the sum assured in your personal capacity. The basic policy from your employer usually provides too little cover. It may not be adequate to provide what's needed during the time it can take to rebuild after the loss of a household provider.
Any remodelling and renovations you have done will increase the value of your home. You may have to expand coverage, so call your adviser and ensure that your home insurance is sufficient. Don't forget to add any other valuables that you have added to your home during the last year, such as a new TV, laptops and any other high-value gifts you may have gotten over the holidays.
When it comes to car insurance, it is tempting to automatically renew your policy without reviewing it. The convenience could rob you of your coverage. For example, say you have a new driver in the family (e.g. your teenaged child) – if they are not included in your insurance, you will have to pay out of pocket should there be an incident. You can create savings by taking advantage of add-ons such as repairs on mag wheels, alarm systems and installation of tracking devices. Additionally, you need to consider the depreciated value of your vehicle so that you can negotiate better premiums with your insurance provider.
You may not own the house you live in, but that doesn't mean you are not at risk of losing assets. Consider Renters Insurance, which covers robberies, vandalism, and natural disasters. It also covers medical costs should anyone get injured at your place, damages you may cause at somebody else's home and rent if you have to stay somewhere else because of damage done to your home.
Loss of income and assets has become an even more significant risk in these tumultuous times. Secure your income with disability insurance. It will protect your income should an accident affect your ability to earn. As a professional, you also need to consider Personal Liability Insurance, which is essential if a lawsuit can put your assets at risk. The liability coverage limits must be sufficient to cover your current net worth and future earnings.
Fortify your business insurance
It might be time to take another look at your business insurance products. Insurance protects you against the unexpected – how did your insurance provider perform in 2020? You may not have claimed, but you can learn from those who did. Many businesses thought that they were protected against the business disruption of 2020, but their insurers disagreed and the matter is still in the courts.
Data is at the centre of today's business world. It does not matter what industry you are in, the looming data privacy laws (GDPR and POPI Act) will affect you. Your business is not too small to avoid cyber risk. You need to protect your business against loss of data and the functional capabilities of your electronic equipment, such as computers and software.
If there has been a significant increase or decrease in your revenue, you will need to adjust your policy. Also keep in mind that obsolete equipment may still be covered in your policy and you will need to update this accordingly.
If you have moved premises, you will need to revisit your policy. For example, the new lease may require you to cover specific items like glass or air conditioning. Relocating may also affect your risk exposure to crime, so adjust your coverage accordingly.
Improve your savings and investments
Insurance protects you, your business and family should anything go terribly wrong; that is important, but that does not mean you don't need resources when everything is okay. Whether it is to grow, have an adventure, buy a big-ticket asset or pay for tuition, you need resources. Life need not be a slugfest, it should be a smooth ride with a lot to look forward to. That is only possible if you have savings and investments.
Savings and investments will allow you to do more with your life. That is why you need an immediate start to reap the long-term benefits, particularly when it comes to your retirement. Fortunately, your insurance products can be leveraged even further than the coverage they offer – you can use them to build your retirement savings with PPS Profit-Share.
PPS is not owned by shareholders, but by its members. That means all the operating and investment profits go to its members. There are no extra fees, paperwork or premiums needed, members simply need to hold a qualifying product. The more PPS products you subscribe to, the more profit allocation goes to your account. PPS Profit-Share is part of the company's mutual promise to its members – that the entire organisation is run with the sole purpose of benefiting its members.
Enter the new year with a good start
The pandemic slowed down work, business, school and life, but time waits for no one. Your future, family and business rely on you making the smart decisions early. Insurance is vital to your financial independence; always make sure that it works for you by:
- Reviewing your insurance policies to make sure you are adequately covered
- Taking advantage of free or discounted add-ons
- Growing your savings and investments
If you are a PPS member, you are an expert in your field. Your knowledge and position in society are privileged and respected. Yet there are those moments when a friend or family member sits you down and you are equals. That is because you trust that they have your best interests at heart – they want to see you succeed. You can get the same from PPS, because it is a group of professional members with a mutual interest.