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Personal Lines Insurance
Wednesday, August 1, 2007
Oldies can save

Older South Africans are missing the chance to save thousands of rands a year in short-term insurance commitments because they fail to take discount opportunities.

First Link Insurance Brokers, the short-term specialists within the FirstRand group with offices nationwide, says it offers policies customised for seniors – the Golden Range – and gathers ongoing feedback from older clients.
This market intelligence highlights some worrying trends at a time when many older people need to make cash savings to meet higher heating bills and stay abreast of food inflation.
Debbie Donaldson, Managing Director, Personal Lines, at First Link, highlights three key findings from information gleaned by staff marketing its Golden Range:
• Most older South Africans are unaware of changes in short-term product development over the last ten years that enable savings by tailoring specific covers for specific risks;
• Few seniors are aggressive exploiters of discount opportunities available to them on the basis of their age and experience; and,
• Many older people leave existing debit orders and other financial arrangements in place for year after year without considering the need for a review, even when their lifestyle has changed significantly, creating a savings opportunity based on an improved risk profile.

She adds, “South Africans who are older than 55 are often amazed to hear that they belong in a special risk pool with many benefits attached.
“They may never have to pay insurance excess again on their motor insurance, for example. They can often obtain free car rental in the event of damage to their vehicle or a write-off. And security discounts are possible if they live in a high-security suburb or low-risk area.
“They often fail to achieve these savings because they are not up-to-date with modern developments in product structuring and they are not sufficiently assertive in pursuit of age-related discounts. Then again, they might be chivvied into action by a younger relative; usually a daughter.
“Our advice is, be proactive and make a few savings that will help you keep ahead of the rising cost of living.”

Copyright © Insurance Times and Investments® Vol:20.7 1st August, 2007
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