South Africans are, unfortunately, notoriously bad savers. A recent study showed that less than 30% of people save toward an emergency fund for when something unexpected – and costly – occurs. For young people specifically, who are still building up their financial means, not having a fall-back for when things go wrong could be seriously costly.
Young people need insurance in order to protect their assets, have protection from legal liability and to build an insurance profile as they are in the beginning journey of their lives. This is especially important because, in general, younger individuals are perceived as a slightly higher risk – depending on which phase of their lives they are in. Starting to build a good insurance profile early on will be beneficial – much like a good credit history.
According to claims trends from Santam, young people primarily tend to claim for house contents, personal effects such as portable technological equipment and vehicle claims.