If you are planning a longer holiday, will your insurance still cover you? Let us go through the different categories.
Home Insurance
Insurers are allergic to higher risks and it is your duty to inform the insurer of any significant changes to your risk. If you are away from home for more than 30 days, it is important that you inform your advisor or insurer. In the worst case scenario, you will not be insured against theft, but at least you will not have to pay for this protection either. If you have taken precautions against burglary, you are insured and once you have received confirmation from your insurer, they will not repudiate a claim.
Medical Aid
This varies from option to option, but most options provide you with international cover of several million rand. You must inform the medical aid provider of where you are travelling to and when you are leaving. You have this cover for three months after leaving South Africa. If you return, even if it is only for a day, and travel again, the three months start again.
Life Insurance, Income Protection and Severe Illness
Generally, if your risk has not increased, your insurance cover will remain in place. The fact is that most countries in the world are a little safer than South Africa. Travel is rarely a problem as long as it is not a conflict country. Disability and income cover is a little more complicated. A change in income, the currency in which you earn and a change of career (even a sabbatical) can affect your cover. Serious illnesses are paid out as long as the doctor’s diagnosis is clearly communicated and supported by medical evidence.
When in doubt
In any case, consult your financial advisor if you are unsure. Silence will not help and may give an insurer reasonable doubt to reject a claim.