Affordable insurance is out there and ‘it’s priceless’

You might think insurance does not fit into your budget but it should.

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After last week’s announcement of an increase in value-added tax (VAT), many South African consumers wonder what the impact will be on their budgets.

The 0.5% VAT increase for 2025-26, followed by a further 0.5% increase for 2026-27, means that VAT will increase to 15.5% this year and 16% in 2026.

Ryno de Kock, head of distribution at PSG Insure, said while this could cause more strain on our pockets, it is important not to abandon your financial plans and in particular short-term insurance cover.

“Insurance is often considered to be intangible but overlooking the value it can bring when you need it most, can have far-reaching effects.”

Short-term insurance serves as a safety net, providing protection in the face of unexpected emergencies and costs.