The life-long value of short-term insurance cover

Chances are, what you most need from insurance cover today may be different from those around you. Why? Personal circumstances and life stages.

What matters most when it comes to short-term insurance cover?

Generally, most of us want cover that shows an understanding of our personal needs and circumstances.

If you think about it, the need for insurance cover often occurs due to an unpleasant and unfortunate event– a home break-in, hijacking, vehicle breakdown, accident or theft, or a need to repair some form of damage. Sensitivity in handling such claims can really go a long way in cementing value for a person.  

A one-size-fits-all plan simply doesn’t provide the same value for everyone. This is where a tailored approach, highlighting benefits that seamlessly fit with what matters most to a person during various life stages work well, while still offering the best, comprehensive protective cover for an unforeseen circumstance.

Life stages of the short-term insurance customer

1. The young adult (early 20s):

This individual is starting out. Many may be students or starting their first jobs. At this stage, life is about ‘living in-the-moment’, learning how to be self-sufficient; and working to achieve goals, dreams and plans.

A generation that’s typically ‘on-the-move’, young adults want insurance cover that’s comprehensive while convenient too. Digitally-savvy, they also favour technologically advanced features and processes that are simple to access and follow – right at their fingertips. Of course, value-added benefits are also attractive to young adults.

“Discovery Insure ‘s Young Adult Benefit for drivers under the age of 26 is geared to encourage improved driving behaviour through an incentivised rewards programme – Vitality Drive,” says Discovery certified Platinum Prestige Financial Adviser, Neil le Roux.

“Rewards on the Vitality Drive programme, like earning up to 50% cash back on fuel spend at  BP or Shell garages, up to 50% cash back on Gautrain spend, and up to 25% off Uber, Road Trip or Scooter Angels services, appeal to young adults. Cover is convenient, comprehensive – and most of all, allows the young adult to continue living ‘on-the-move,” he adds.

2. The price sensitive adult (mid to late 20s):

At this stage, young adults are looking to create more established futures. This is a time to cement chosen career paths and begin settling in their personal lives. With this comes more responsibility. Thus, young adults will be looking for value for money as they build up assets of their own.

“That’s why value-for-money is important for people at this stage of their lives. A person begins to favour the kind of features and benefits that save them time and money. With a solid protective offering, the Discovery Insure Essential Plan is thus an ideal fit,” says le Roux.

“Excess flexibility, screen protectors, car hire, emergency roadside assistance, home assist and Xpress repairs, retail value boosters and even legal support benefits contribute towards value-added, comprehensive cover for the assets that price sensitive adults are working to establish and secure.”

3. The young family (the 30s):

At this stage, client’s careers are more established or settled, and individuals may begin to shift their focus to starting a family of their own. At this life stage, individuals are responsible for all costs relating to their home and modes of transport. They’re also likely to be looking ahead now and making solid plans to better sustain their lifestyles, as well as support their family.

“Young families thus want comprehensive cover that takes care of their car and household insurance needs so that they can focus on those of their family. The Discovery Insure Classic Plan provides extensive cover that brings with it peace of mind for just this purpose,” says le Roux.

“In addition to state-of-the-art safety features, young families can benefit from up to 25% off child car seats, up to 20% discount on vehicle maintenance, and additional warranty cover for the mechanical breakdown and electrical failure of their vehicles. An online vault to store important documents like valuation certificates and proof of vehicle and home ownership are also valuable features for a family-orientated customer,” he adds further.

4. The more established family with young drivers (the 40s and 50s):

At this stage, the children have grown and become young adults. Some may be studying, while others may immediately enter the workforce. Parents may now be preparing for their own next stage of life – retirement. Parents may still provide a little financial support for their children – purchasing their first car and funding insurance – until such time as they begin earning themselves.

“For families that are well settled and preparing for new chapters in their lives, the Discovery Insure Classic Plan is also a good fit,” suggests le Roux. “Plans offer protective cover, taking care of any unforeseen necessary expenses, so that each family member can focus on laying the foundations for the next chapter of their lives.”

Parents with adult children who are new drivers can get additional peace of mind with no excess benefits, a write-off accelerator feature, retail value boosters and embedded car hire or Uber trip discounts. The Insure Funder Account is a useful feature to build funds to cover vehicle excess should a claim be processed, as well as the ability to fund up to 100% of spend on new tyres at Tiger Wheel & Tyre.

5. The high net-worth individual (40s+):

This individual is an established executive with career goals and ambitions. He or she earns well and enjoys a variety of different luxuries. They’re entirely self-sufficient, financially stable, driven, goal-orientated and looking for personalised and unique cover and service.

“That’s why a personalised insurance plan which offers unique features and services that provide ‘just a little bit more’ works well for this type of individual,” says Le Roux.

“Discovery Insure offers the Purple Plan which provides enhanced benefit limits, cover for all risks, a dedicated service executive, flexible portable possessions cover and exclusive experiences, in addition to state-of-the-art safety features and Vitality Drive rewards. Luxury touches built in to this plan include a cellphone upgrade benefit, upgraded car hire selections, and multi-vehicle benefit cover.”

Matching real value with relevant needs

“During the course of our lives, we make choices and establish ourselves in ways that create different priorities. As such, we have different needs when it comes to insurance cover,” explains le Roux. 

Extensively structured plans ensure that basic needs can be well taken care of at any point in our lives. Value is created when plans go beyond these basic needs.

“When you have a comprehensive plan in place, unplanned for additional expenses can be avoided when the unexpected happens. This lightens the load on your pocket, so you can get back to the priorities that most matter to you at whichever life stage you’re in,” he concludes.