Risk Cover

The mere idea of buying something that one cannot touch, feel, put on, eat or generally enjoy is not a nice one – maybe it’s in the human psyche to want a sensory experience as reward for money spent. Risk cover (which essentially is just a comforting thought until one needs it) falls into this category. It requires cold logic and clear thinking to buy it.

Perhaps it is the nature of risk cover that makes it such an unpopular purchase because in essence it is simply a wager with an assurance company that you might (or might not) be victim of a specific risk in a predetermined time period. e.g. They bet a large lump sum amount against your monthly premium that you will not get cancer before the age of 65. If you do – they pay. If you don’t – you’ve wasted your money!

Obviously when considering the purchase of risk cover you should take many factors into consideration. Factors like your life expectancy, your health, the inherent dangers in your environment, your responsibilities towards your dependents, the cost of the cover etc.

The assurance company should also consider their risk and therefore they appoint highly paid actuaries who spend their time studying statistics, working out mortality and probability models and, in general, find out what they should know about you to allow them to take this (calculated) bet or differently put, accept your risk.

Unfortunately, in today’s very uncertain and fast moving environment it is virtually impossible to go through life without having an assurance company sharing (at least) some of the risks you are prone to face.

Of course (as promised) for more information or assistance please e-mail us or phone 012 345 6480.