Insurance products
The two most important insurance products that all people should consider are designed to assist you in the event of death.
Life policy
This is a type of insurance where the insurer agrees to pay out a pre-determined amount of money when you die. You pay for life policy insurance in monthly instalments. The pay-out is to beneficiaries which were nominated by the policy holder when they were still alive.
Funeral policy
This is a plan for members to receive an amount of money if there is a death in their family. Money is saved to pay for the funeral costs of a loved one. The pay-out lessens the financial stress during an emotional time. Regular monthly contributions make the massive cost of a funeral more manageable.
Watch out for scams
Exclusive events
If you are invited to an 'exclusive' event to sign investment documents, give out personal information, or even part with your money, think twice about attending.
Get rich quick
If it sounds too good to be true, it usually is. Exercise extreme caution when you are presented with the promise of high returns in a short period of time.
No mention of risk
Even the most renowned financial trading firms will tell you that their investment opportunities involve risk. Therefore, be suspicious of guaranteed high returns with no risk.
No sign of accreditation
You should only ever trust your money with a company accredited by or registered with the Financial Sector Conduct Authority (FSCA). If you suspect otherwise, let the South African Reserve Bank know or visit its website for help.
