Insurance is an essential ‘grudge purchase’. If you think you don’t, you’ll probably find out that you need it when it’s too late.
Simply put, insurance is a transfer of risk so that when you lose the thing you have insured (your life, income, car, etc.), you are covered by your policy. Insurance is divided into two main categories: short and long term insurance. Let’s unpack that.
Long-term insurance provides you with an income when you can no longer earn an income like when you retire, or if you are permanently disabled or pass away.
Examples of long-term insurance
- Life cover
- Disability cover
- Dread disease cover
- Funeral cover
- Credit life cover
Short-term insurance is risk cover that you take out on your possessions. It protects you against unexpected loss or damage like severe natural disasters, accidents or theft.
Examples of short- term insurance
- Car insurance
- Bicycle insurance
- All-risk insurance
Did you know that Momentum Multiply Premier members get discounts on their Momentum insurance premiums?
Momentum Multiply Premier members get points and rewards for having Momentum short-term and life insurance like up to 60% off their insurance premiums. They also get up to R 3 000 a month per family to help day-to-day healthcare costs. We call this HealthReturns.