The holidays are here. Time for fun, sunny skies, festivities, family gatherings ... and road deaths, burglaries and con artists.
My apologies for bringing this up, but have you thought about what could happen over the next few weeks - not just the good things, but also the potential bad ones? If not, you should do so this weekend.
Here is a checklist of things you should look at - in both your interests and those of your dependants:
1. Life assurance
Ask yourself what would happen if you became one of this holiday's road death statistics. Is your life assurance cover sufficient to meet your dependants' needs?
But even before you ask yourself whether you have sufficient life cover, ask yourself what your dependants' financial needs would be without you. If you have not asked that question recently, you should ask a reputable financial adviser to assist you in establishing what your dependants' needs would be, and then work out how much life assurance you must have.
2. Disability assurance
Many people will die on our roads over the holiday season, and many thousands will be left badly injured and disabled for life. As crude as this may sound, disability can have even more dire consequences than death, because an "extra mouth" still has to be fed - yours. You need to assess both your needs and those of your dependants to establish what type of disability assurance you should buy.
3. Short-term insurance
Have you updated your short-term insurance? This may not be as simple as it seems. The issues you need to take into consideration include:
- Household insurance. Be sure you understand which items are insured and which are not. Are items that you bought or received this holiday season covered?
You also need to take account of what articles you will be taking on holiday with you. You may need additional or separate insurance.
Protect your possessions by taking some precautions, including:
* Check that your home alarm system is working properly.
* Arrange for what should happen if your alarm is triggered.
* Arrange for someone to collect your post and newspapers. A mounting pile of newspapers and mail is a good "I am away" signal to burglars.
* Switch off your geyser (it will also save you money) and close taps where appliances are connected to pressure-vulnerable pipes to prevent potential flooding.
* Install a timing device that turns lights on and off at appropriate times.
* Compile a list of all the expensive articles in your home, including their description and serial numbers. Not only will this exercise enable you to ascertain whether or not you are fully insured, but having such a list will assist when you make a claim.
* Have your insurance company's contact number with you in case you lose anything or your home is burgled while you are away.
- Motor vehicle insurance. Is your vehicle properly insured and are the premiums up to date? You also need to ask yourself what would happen if your vehicle broke down or you were involved in an accident hundreds of kilometres from home. Most insurance companies have emergency numbers that you can phone to make a claim and to obtain roadside assistance in the event of an accident.
In most cases, your insurance company only covers accidents and not breakdowns. You have to join the Automobile Association (AA) if you want roadside assistance should your vehicle break down.
You should also take into account what will happen if you need medical assistance in the event of an accident. You can buy assurance that will provide for emergency evacuation. This may be attached to your medical scheme cover or AA membership. You need to check on this.
- Travel assurance. This is something you definitely need when you travel abroad, particularly if your holiday entails physical activities such as skiing.
You get travel insurance virtually automatically if you buy an airticket using your credit card, but check that the cover is sufficient to meet your needs. In most cases, you can buy additional cover on your credit card, or your travel agent can assist you.
- Homeowner's insurance. When did you last check whether your home is insured at its replacement value? In other words, if your home burnt down today, would there be sufficient money to replace it?
4. Your will
Is your will up to date? In fact, do you have a will at all? If you die without a will, your estate (your assets) will be divided according to a formula that may see needy family members going short and relatively well-off relatives receiving a windfall.
Your will should not be drawn up in isolation, but must dovetail with your overall financial plan if it is to make sense and be enforceable.
5. Protection against scams
While you are taking a break, the scam artists are hard at work. They know you are relaxed and less on your guard. One of their main targets is plastic money, such as ATM cards and credit cards. Treat both as if they were cash, because scam artists certainly do.
Absa Bank recently launched a "Take Care" campaign to educate clients about the precautions they should take when using an ATM over the summer holidays. Here are some of the campaign's tips:
- Keep your card and secret personal identification number (PIN) safe. Memorise your PIN, never write it on the ATM card or give it to someone else, not even your wife, brother or a bank's member of staff.
- Ask your bank to change your PIN whenever you think its secrecy has been compromised.
- Use ATMs where you feel the most comfortable. Avoid using the ATM if there are any suspicious-looking individuals hanging around.
- Have your card ready in your hand before you approach the ATM.
- Do not use the ATM if you notice anything that indicates that it may have been tampered with.
- Do not insert your card until asked to do so by the display screen.
- Be especially cautious when strangers offer to help you at an ATM, even if you are experiencing difficulty with the transaction. Never allow anyone to distract you while you are transacting at the ATM.
- Do not let anyone see you enter your PIN; you should shield the keypad with your hand when entering your PIN.
- Never disclose your PIN to anyone, not even the bank or police.
- If you think the ATM is not working normally, press the "cancel" key, withdraw your card and go to another machine.
- If your card gets jammed in the machine, or if the machine retains your card, or if you lose your card, or if you are interfered with at an ATM, report it immediately to the bank and/or police using the help-line provided or the nearest phone. Never allow a stranger to make the call on your behalf.
- Do not be in a hurry during the transaction.
- Carefully secure your card and cash in your wallet, handbag or pocket before leaving the ATM.
Credit cards are increasingly being used in fraud operations. Here are a few guidelines for credit card use:
- Never let your credit card out of your sight. When paying in a restaurant or elsewhere, accompany your card to the pay point.
- Ensure your credit card is returned to you.
- When making credit card purchases over the telephone or internet, make sure you are comfortable with the business or organisation with which you are dealing.
- Check your credit card statement when you receive it and query any incorrect or suspicious entries immediately. Your card company will reverse any payments you reject.