Just as the government must allocate resources carefully to sustain economic growth, individuals must also budget wisely to safeguard their financial futures, and short-term insurance is a crucial part of this equation.
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The delay in South Africa’s 2025 National Budget Speech served as a reminder of the complexities of financial planning, where balancing priorities and preparing for uncertainties are key.
Just as the government must allocate resources carefully to sustain economic growth, individuals must also budget wisely to safeguard their financial futures, and short-term insurance is a crucial part of this equation.
“In a country where unexpected events can disrupt even the most carefully planned finances, insurance isn’t just an expense, it’s a vital part of risk management,” says Siyakha Masiye, spokesperson at Miway. “It can help to safeguard finances in the event of unforeseen circumstances like car accidents, home damage, or theft, preventing these incidents from turning into long-term financial burdens.”
South Africa has one of the highest rates of vehicle accidents in the world. According to a report last yea by the Minister of Transport, Barbara Creecy, more than 10,000 people lost their lives on South Africa’s roads in 2024 alone. While many survive these accidents, they often face expensive vehicle repair costs or may even have their car written off since it is damaged beyond repair, leaving people stranded without transport.
When it comes to property, the risks are just as concerning. Natural disasters, fires, and other unexpected incidents highlight the urgent need for insurance, especially as these events are not often anticipated. Without insurance, significant financial strain can become your reality. Having the right insurance in place allows you to focus on recovering rather than stressing over funds.
Masiye says that one of the key benefits of insurance is its predictability. “Unlike many other expenses, insurance premiums remain relatively stable, with minimal annual increases depending on whether your risk profile has changed, giving you a clear picture of your monthly financial commitments. Including insurance costs in your budget allows you to plan more effectively while avoiding unpleasant surprises,” he adds.
Car insurance and home or contents cover might seem like optional extras at first glance; after all, if you drive carefully and lock-up your home properly, why should you worry? ”But the reality is there are so many unpredictable events that could derail your plans, from someone else causing a car accident resulting in a major car repair for you, to managing the expenses out of pocket if you were to replace all your belongings after your geyser bursts and floods your property. Without proper cover, you could be financially exposed,” he says.
Effective budgeting isn’t just about managing everyday expenses, it’s about anticipating potential financial shocks and minimising the fall out. Given South Africa's economy and the unpredictability of daily life, having a comprehensive financial plan is more important than ever.
Masiye offers a few simple steps to make insurance a core part of your financial plan:
“Much like the national budget, personal finance requires careful planning and risk management. Including short-term insurance in your budget is not just smart, it’s essential for financial resilience,” Masiye says.
PERSONAL FINANCE
