Asset manager Piet Vijoen has argued that people systematically overpay for insurance because they prefer the certainty of losing a little each month (i.e. the premium) rather than risk facing an uncertain loss at some point in the future.

In this episode of My Money, My Lifestyle, host Maya Fisher-French debates the relevance of insurance and how much is enough with financial planners Henri le Grange and Ben Nel.

Insurance is often viewed with scepticism, and many people question whether it is truly worth the investment. This episode addresses key concerns surrounding life cover, income protection, and critical illness cover, as well as how to avoid a "tick box" approach that leads to clients being overinsured and overpaying for premiums that may not align with their actual needs.

 

Listeners will also learn about the risks associated with age-rated premiums, which can escalate quickly and become unaffordable as individuals age. 

The episode also explores the concept of self-insurance, where individuals accumulate sufficient liquid assets to cover potential liabilities without relying solely on insurance. 

 A personalised approach ensures that clients are not just sold a product but are guided to make informed decisions that benefit their overall financial health.

This episode is a must-listen for anyone looking to navigate the often confusing world of insurance and personal finance.