Warning: Hang on to your policies

01 JULY 2009 MMO Bongani Sithole warns consumers that insurance should be viewed as a necessity not a luxury at Liberty Life in Braamfontein. PIC. MOHAU MOFOKENG. 01/07/2009
01 JULY 2009 MMO Bongani Sithole warns consumers that insurance should be viewed as a necessity not a luxury at Liberty Life in Braamfontein. PIC. MOHAU MOFOKENG. 01/07/2009

DURING the tough economic climate we are experiencing, cutting back on monthly expenditure is on everyone's agenda.

DURING the tough economic climate we are experiencing, cutting back on monthly expenditure is on everyone's agenda.

It is, however, easier to save on things that do not provide instant gratification or expenses that don't change one's lifestyle too drastically.

The first things to go are insurance policies, funeral and hospital cover.

But according to Bongani Sithole, head of entry-level markets at Liberty Life, "Cutting back on insurance feels painless while you are doing it but it is essentially stealing money from your own future."

He said people don't see the value of insurance until something goes wrong.

Sithole also encouraged people to hang on to their policies during this tough time, since it not only provides peace of mind but also an accumulation of wealth.

Alexander Madoda Siqaza, a registered debt councillor, said the first things that should be reduced in any budget are luxuries such as dining out or DStv packages.

Siqaza said: "It is advisable to shop around for cheaper car insurance premiums. Consumers should, however, be wary not to lose key benefits but good advice can be obtained from financial advisers."

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