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Alleviating Financial Stress Through Insurance Bundling

Many people are looking for cost-cutting measures to save money in this tough economic climate and this often starts with what may not be perceived as immediate priorities like life insurance, investments, or funeral cover.

In reality, this should be a last resort, as insurance and investments are key to reaching your long-term goals and shielding you against unforeseen circumstances along the way. Instead consider bundling policies with one company to save money and generate maximum value.

Research confirms how the pandemic fundamentally changed consumer needs in the insurance sector. Accounting firm Ernst & Young recently revealed data which showed emerging markets and younger generations who took the biggest financial hit during the pandemic now show the greatest interest in new insurance products.

For those who were surveyed, recovery and preparation for another crisis were immediate priorities.

"Times have been hard, and they will certainly get harder. Combining all your policies with one financial services company could save you money compared to having a variety of insurers. When one company is handling all your policies, it takes the hassle out of insurance: less time sorting through multiple documents and tracking monthly payments; and the peace of mind knowing there's only one call to make in a time of need," says Lindi Monyae, Executive for Liberty's Emerging Consumer Market.

Insurance provides vital cover against unforeseen expenses, the purpose of which is to protect the policyholder from unexpected costs that normally would be unaffordable. "Some people may consider cancelling their insurance policies for some financial relief in the short term, however, this lapse in policy presents major risks in the long term. One should consider that often, when retaking a policy, there is a six-month waiting period before claims are recognized for approval; or that premiums may be significantly higher due to age. So, hang in there," advises Monyae.

Why bundled offering

Bundling insurance is when you buy policies from the same provider to improve efficiency. This can include life insurance, funeral cover, and more.

Service providers consider bundling discounts for several reasons: the reduction of expenses in onboarding a customer once as opposed to onboarding each time for separate purchases; or that the service provider may feel a policyholder is less likely to lapse if they hold multiple products. Some insurers report a 25% reduction in premiums as an effect of bundling.

Bundling also makes the administration and claims process simpler for the policyholder.

"The ease of working with one insurer is an added benefit, and the administration in the event of a claim is also simpler for the client. It also provides peace of mind knowing that only one insurer has access to your personal information and banking details. "For example, Liberty's bundled offering - can include funeral, life and accident cover. With funeral cover you can insure up to 32 family members depending on your needs and budget. With life cover you can rest assured knowing that you have provided financial security for your family in the case of your passing and with an accident cover payout you can continue leading the lifestyle that you've built for you and your family, whether it is continuing the children's education, sustaining a business, or paying off a bond," she says.

Comparing a range of benefits and insurance coverage on offer in ensuring that a lower premium does not mean less value is highly recommended.

While we traverse a myriad of challenges, having sufficient insurance coverage to protect you from any unforeseen circumstances is important, especially in alleviating the financial stress that comes with unpredictability. Policyholders looking to save on their premiums should consult their Financial Adviser on the benefits of a bundled offering so that they can rest assured knowing that their family will be okay without them because they have a plan that makes a plan when life happens," said Monyae.



This article does not constitute tax, legal, financial, regulatory, accounting, technical or other advice. The material has been created for information purpose only and does not contain any personal recommendations. While every care has been taken in preparing this material, no member of Liberty gives any representation, warranty or undertaking and accepts no responsibility or liability as to the accuracy, or completeness, of the information presented.

Please consult your financial adviser should you require advice of a financial nature and/or intermediary services.

Liberty Group Limited is a Licensed Life Insurer and an Authorised Financial Services Provider (no. 2409).

For more details about benefits, definitions, guarantees, fees, tax, limitations, charges, premiums/contributions or other conditions and associated risks, please speak to a Cornerstone Financial Adviser.



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