Some expert advise on what insurance is the best for you!

Single Vs Joint insurance
Decisions, decisions, decisions, it's never easy deciding what type of cover to get. Usually the decision on what type of insurance cover to get is based on cost, but it's not that straight forward. There are a host of factors which go into deciding what might be the best cover for you. The decision is further complicated when you are in a relationship.
Single cover means the policy covers only one person. Joint cover means it covers two people under the same policy. If you and your spouse decide to get individual cover it means when it comes to claims you both get separate pay outs. In joint cover on the other hand, you will receive only one pay out in the event of the death of you or your spouse, and the policy after which is dissolved.

Joint cover
Conditions for joint cover
* Married or registered as civil partners
* Cohabitating with shared responsibilities
* Shared financial obligations (i.e. Business Partners)

Pros and Cons
With only one monthly premium to pay couples opt for joint policies as they are more affordable, but this doesn't come without its own problems. In the event of separation or divorce, the monthly premium must be paid or the policy will be dissolved. This is regardless of the new circumstances of the holders of the joint policy. In the case of a divorcee; if she dies, the beneficiary of the policy will still be her ex-husband not her new husband if she has remarried. Joint policies cannot be split in the event of a separation. In most cases after the dissolution of the marriage, policy holders will be incapable of taking out new policies. Taking out a new policy later in life is very expensive due to higher premiums. Taking into account policy holders who don't get divorced or separated, joint policies still present another danger. If one of the partners dies, there will be a single pay-out and the policy will be dissolved. This leaves the widowed partner with no further cover from that policy.

Single Cover
Single cover insurance policies only cover one person. These policies have the advantage of catering to individual needs. This is in contrast to joint policies which are more generic. Joint Policies have to cover two parties, so they compromise on individual needs, unless the policy holders both have the same insurance cover needs. For a household with separate cover; in the event of the death of the spouses, there will be two separate pay-outs, which might mean a better life for dependents of the policy holders. On the other hand if only one spouse dies that policy will be paid out, but the surviving partner will still have cover from their own policy. Single policies have the benefit of flexibility, they allow for greater degrees of freedom with regards to the terms of the policy. As much as single policies give holders a peace of mind, they are also very expensive. In a household under considerable financial strain or young couples, this type of policy might not be feasible.
The decisions to either take out a single or joint insurance cover will ultimately come down to circumstances. Both these types of policies have strengths and weaknesses. People looking for cover should assess their needs in a policy, their circumstances and nature of their relationship in deciding the right policy for them.

"In-Trust"- Why writing your policy in trust is so important
Writing your insurance policy in trust means that you are protecting your claim from taxation. This simply means putting any claim or pay-out from your policy outside of your estate, avoiding inheritance tax. Inheritance tax laws in South Africa allow for 20% of dutiable estate value to go to SARS. This means that SARS will collect 20% of the estates value above R3 500 000. If your estate is worth is R5 000 000, SARS will collect 20% of R1 500 000, here inheritance tax would total R300 000. Writing your insurance policy in trust means that the pay-out from your policy will not be included in the valuation of your estate. Writing in trust also means when executors of the policy make a claim on your policy they won't have to apply for grant of probate, which can take months.

Online Insurance Quotes
People are complex and deciding on the right cover is a matter of context. Regardless of which type of insurance cover suits you, it is important to get the best value for money. Online Insurance quotes, will provide you with a quick and easy way to compare quotes from insurance providers. This will save you time and money. Online insurance quotes will put the most competitive policies at your fingertips, making your decision more informed and intuitive. Visit Dial direct for a quote today.

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3. Louise Vorster Photography
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