The South African festive season is a time of joy, but it can turn into a financial headache if you are underprepared. <\/p>\n\n\n\n
The festive season also sees an increase in unexpected events, whether on the road, beach or even at home. <\/p>\n\n\n\n
\u201cFestive planning isn\u2019t just about budgeting for gifts or holidays\u2014it\u2019s about being ready for the unforeseen to safeguard the life you’ve built and the future you’re working towards,\u201d\u00a0said Old Mutual Personal Finance Certified Financial Planner (CFP) Sean van Zyl.\u00a0<\/p>\n\n\n\n
\u201cChecking that your financial protection, such as life and car insurance, is up to date ensures you can enjoy the season worry-free. Whether it\u2019s a minor accident or unexpected travel delays, having a proactive plan can make all the difference.\u201d<\/p>\n\n\n\n
Old Mutual Insure said that insurance claims typically surge by 20% over the festive season, highlighting how the rush of the season often leads to accidents or disruptions that could derail your holiday plans. <\/p>\n\n\n\n
\u201cWhen you\u2019re prepared for surprises, you can focus on what truly matters\u2014enjoying time with your loved ones, knowing that if life throws a curveball, you\u2019re covered,\u201d added van Zyl.<\/p>\n\n\n\n
Van Zyl offered the following tips to ensure you\u2019re covered this festive season:<\/p>\n\n\n\n
Take a Fresh Look at Your Policies:<\/strong><\/p>\n\n\n\n The festive season brings extra risks, so it can be the best time to review one’s car insurance. <\/p>\n\n\n\n Comprehensive cover can be a lifesaver, as it protects you from \u201cown\u201d accidental damage, theft,\u00a0fire\u00a0and third-party cover, which are much more common during the holidays. <\/p>\n\n\n\n “Don\u2019t leave it to chance; check now to avoid a financial headache later. There are certain realities in life and even though we know it could happen, we don\u2019t know when. Rather be\u00a0prepared at all times.” <\/p>\n\n\n\n Double-Check Your Life and Disability Cover:<\/strong><\/p>\n\n\n\n Accidents are more likely to happen amid the increase in road travel. <\/p>\n\n\n\n “Make sure your life and disability cover are up to\u00a0date\u00a0so your family is protected financially if the unexpected occurs. The last thing you want is to worry about the “what-ifs” when you should be focused on making memories with your loved ones.” <\/p>\n\n\n\n “Beneficiaries should also be reviewed as some policies don\u2019t always have a beneficiary nominated.” <\/p>\n\n\n\n “It\u2019s also important to prepare your finances if your risk benefits are through your employer and are paid out with your pension\/provident fund value, as this could cause delays and leave your family with financial restrictions.”<\/p>\n\n\n\n Keep Your Will Current<\/strong> <\/p>\n\n\n\n The higher risks mean that one should keep their will up to date during the festive period. <\/p>\n\n\n\n “Having an up-to-date will give you peace of mind that your loved ones are taken care\u00a0of\u00a0and your wishes are respected.” <\/p>\n\n\n\n “If you\u2019ve had a major life change\u2014like buying a house or welcoming a new family member\u2014now\u2019s the time to make sure everything\u2019s in order.” <\/p>\n\n\n\n “This includes having secondary beneficiaries or heirs,\u00a0in the event that\u00a0your initial heirs travel with you and predecease you.”<\/p>\n\n\n\n Don\u2019t Let Hidden Costs Catch You Off Guard<\/strong><\/p>\n\n\n\n Festive budgets can often forget little things, such as extra petrol for road trips, meals and treats at stops, or those spur-of-the-moment activities. <\/p>\n\n\n\n These costs can add up quickly and can throw one’s finances off track. <\/p>\n\n\n\n South Africans should build a detailed budget and set aside a little extra for surprises. <\/p>\n\n\n\n Plan for January\u2019s \u201cLong Month\u201d<\/strong><\/p>\n\n\n\n December spending can often make January feel like the longest month if you are not careful. <\/p>\n\n\n\n Before splurging on festive fun, make sure that you’ve\u00a0prioritised\u00a0essentials such as school fees, utility bills, and loan repayments. <\/p>\n\n\n\n “Starting the new year without financial stress is the best gift you can give yourself.” <\/p>\n\n\n\n Be Smart with Your Holiday Spending<\/strong><\/p>\n\n\n\n The festive season doesn\u2019t have to break the bank, with emergencies planned for, bundled travel packages chosen and simplified gift-giving with ideas like Secret Santa or spending limits. <\/p>\n\n\n\n Moreover, don’t forget to save your insurer’s details, as many now offer WhatsApp services for quick claims if something goes wrong on the go. <\/p>\n\n\n\n
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