Hardly a month goes by without a complaint from consumers who accuse insurance companies of "illegally" withholding the premiums they had paid over the years towards their life or funeral covers.

Hardly a month goes by without a complaint from consumers who accuse insurance companies of "illegally" withholding the premiums they had paid over the years towards their life or funeral covers.

Consumer Line spoke to Bongani Sithole of Liberty Life, who says there are two main types of insurance.

Risk cover protects you if something goes wrong, and investment products help you save.

There are two main types of risk cover: short-term and long-term.

Short-term (or indemnity) insurance is designed to protect the important physical things in your life, for example, your house, furniture and appliances, your car, cellphone and valuables like jewellery.

With short-term insurance you take out a policy to protect certain possessions, and it covers you if you damage or lose them.

For example, it can cover your house if it burns down or if your cellphone is stolen.

"These unfortunate events are uncertain and unplanned," said Sithole.

Examples of short-term insurance include damage to your property due to flooding, fire damage, car damage, burglary, robbery and theft.

Remember, it is important to pay your monthly premiums. If you no longer want the cover and stop paying, you will not get any money back. You are only protected if you pay your premiums.