VAT: why you shouldn't neglect your insurance cover

THE announcement of an increase to VAT has left many South Africans wondering what the impact will be on their budgets.

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The 0.5 percentage point increase this year, followed by a similar increase next year, means that VAT will increase to 15.5% this year and 16.0% in 2026.

While this could place more strain on your pocket, it’s important not to abandon your financial planning, particularly your short-term insurance cover. We tend to overlook the value it can bring when we need it most.

Life is unpredictable, and accidents or unforeseen events tend to happen while we're busy making other plans, as the saying goes. Short-term insurance serves as a safety net, providing protection and peace of mind in the face of unexpected emergencies and costs.

While it may seem like a luxury item in your budget that you might not need currently, the long-term benefits of having comprehensive insurance cover far outweigh the costs.