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Change your finances with the power of positive thinking


Remaining positive in the face of a crisis – and during a protracted pandemic – is easier said than done

While not everyone is an eternal optimist, research has shown that a positive outlook is not just good for your mental, emotional and physical health, but for your financial health too. 

Staying positive can change your financial outlook

A recent online survey by Sanlam into the challenge’s women have faced during the lockdown, revealed that six in 10 women were able to find a silver lining despite worrying about health, a reduced income and making ends meet. For some, the lockdown was a lesson in slowing down and appreciating the smaller things in life, while for three in 10, the main upside of the experience was that they got to spend more time together as a family. 

A positive outlook not only makes you feel good, but it also helps people bounce back from setbacks. It can help kick-start the process of working towards financial goals, starting businesses, or taking action to pivot their current businesses in a new direction.
This sets people on a growth path that can lead to the employment and economic growth our country so desperately needs.

You need positive action to go with your positive thinking

But a positive outlook alone will not result in financial well-being. While optimism helps to reframe our mindset to believe there is future worth planning but it is even as important to ensure that practical steps are taken to enable the future. Essentially, closing the gap between intentions and actions.

To create a positive outlook on your finances and enable financial well-being,  ask yourself the following, write down the answers and don’t just make mental notes:

  1. What future goals do I have for myself and my family? 
  2. If my circumstances have changed, do I need to re-evaluate my goals?
  3. When would I like to achieve these goals?
  4. How am I going to achieve the goals?
  5. And, ensuring that you are ticking things offs given the shocks which they face, and how often in the year will I monitor the progress on my goals – diarise this?

With this focus, it would also be the perfect time to enlist the help of a professional financial adviser who can help kick-start your financial goals and close the gap between your intentions and actions. This is an important consideration as according to Sanlam’s survey, eight in 10 women are currently tackling their finances without the help of a financial expert. 

Embrace the power of positivity 

The outlook you have in your life also needs to be positive to help you benefit on the financial side – it’s all about the habits we focus on daily. Clinical psychologist Nozibusiso Nyawose recommends the following for you to embrace the power of positivity, and maintain a healthy mind required to make good decisions:

  1. Surround yourself with positive people to establish a safe and supportive environment.
  2. Re-evaluate and reflect on the challenges you face to understand what is affecting your ability to be positive. If your pessimism is driven by your behaviour, you need to re-evaluate the situation to gain insight and make informed decisions about your next steps. This insight will help you identify and take responsibility for any unhealthy habits or behaviour and take progressive steps to change them.   
  3. Exercise regularly. This plays a crucial role in improving your mood, mental stability and contributes to positive thinking and your overall well-being.  
  4. Practice positive self-talk. Be gentle on yourself, reaffirming your positive actions rather than letting your inner dialogue become negative, belittling or degrading.

Make positivity a family tradition

International speaker, author, parenting coach and founder of Munchkins, Andalene Salvesen agrees. She suggests starting a family tradition of acknowledging the things you are grateful for. This will help you and your family remain optimistic, find those silver lining moments and is the most effective way to maintain joy and emotional stability. 

To embrace the power of positivity and its potential to impact our financial well-being, prospects for our nation, we need to shift our mindset to be more positive by visualizing the future we would like and then take active steps to close the gap between our intentions and actions. The result should enable the start of the journey through a clear roadmap with dates to reach your financial goals and focused effort to engage often with your financial goals.

 

 

 

Article courtesy of All4women , written by Kenosi Magosha – Head of client solutions savings


Ten things to keep in check to ensure that your short-term insurance claim gets approved



Getting insurance cover for one’s assets is commonly seen by many as a  grudge purchase, and as much as some customers might not enjoy paying their monthly premiums, the good news is that they’re assured that their assets are well covered (within the limits of the policy wording) to face the worst of unforeseen circumstances.

Very few people read through the fine print in their insurance contracts, which differs significantly between policies and insurers. In some instances, it’s only when they need to submit a claim, that they learn about a missed clause that they have not adhered to or an exclusion, resulting in a possible rejected claim.

Claim rejections happen and often leave the customer feeling dissatisfied and cheated.  As a customer you have the right to request the reasons for rejection from the insurer and either approach the insurer’s internal arbitrator or take it further by approaching the Ombudsman for Short Term Insurance to counter the rejection. 

 

Often, claims are rejected for valid reasons, and it is unfortunate that in some cases, the customer has misinterpreted the cover and exclusions or failed to comply with the terms and conditions.  Where you feel the rejection is not warranted, obtain a second opinion to validate your claim and present this evidence to your insurer.

 

Below are 10 things customers need to keep in order, to ensure that their claims are approved:

 

 

.    Wear and Tear – This is where items have a life span and once that time has been reached, it breaks or no longer works effectively. This is not covered by the policy and is noted as an exclusion.  For example, buildings need to have water proofing on the roof, as they’re exposed to sun and harsh weather conditions, these generally perish after 2 years. If your roof leaks following a storm, due to this wear and tear, your policy will not cover the water proofing. Depending on your policy wording, the resultant damage may or may not be covered.

·       Maintenance – This is general upkeep of your property or items. Failure to do this will result in a rejection as this is a specific exclusion.  For example, tree roots cause damage to pipes, drains, paving, walls or your motor vehicle must be serviced annually.

·       Defective workmanship/ materials used – This is specifically excluded. For example, the contractor builds a wall, fails to follow South African building regulations or mixes the building materials incorrectly and the wall collapses.

·       No cover – This is where an incident has occurred, but the policy does not provide the  cover for this event.  Events that are commonly insured are fire, wind, storm, hail, theft but some events may/may not be included such as accidental damage and power surge.  A claim for accidental cover, where this has not been selected, will result in ’no cover’.

·       Non-Disclosure – Failure to notify your broker or insurer of relevant changes that may increase the risk of acceptance for the policy to respond to may result in your claim being rejected. For example, a tenant occupies your property which you have disclosed.  After a couple of months, the tenant moves out of your property and is vacant (no signs of anyone living there by way of visiting the premises, lack of furniture). This change in risk has not been disclosed. Should vagrants move in or damages are caused  to the property, this could result in a rejection of your claim.

·       Late notification – The insured has 30 days to report a potential claim to the insurer/broker.  Failure to do so may prejudice the insurer’s ability to assess the claim and result in a rejection.

·       No insurable interest – The interests of all parties must be noted on the policy for their respective rights and interests to be covered.  If you do not have financial interest in an asset, you cannot insure it.  For example, your friend’s car is registered in her name, but you are insuring it on your policy without notifying your insurer/broker of the insurable interests. 

·       Unpaid premiums – If you place a stop order on your short-term insurance debit, this will result in an immediate cancellation and no cover will exist as your intention was not to pay the premium.  If your debit order returns due to lack of funds,  you are required in terms of legislation and your policy wording to pay this outstanding amount before the insurer will consider the claim.

·       Misrepresentation, dishonest or criminal behaviour – All these could draw serious consequences for the Insured, to the extent that they could be blacklisted and may not be able to obtain insurance.

·       Avoidance of cover – In the event of fraud, misdescription, misrepresentation or non-disclosure of material facts, the insurer could cancel the policy with immediate effect or declare the policy null and void from inception date, resulting in the claim being rejected.

In order to avoid a situation where your claim could be rejected, it is important to familiarise yourself with the above-mentioned reasons, but also make sure that the terms and conditions are reviewed regularly. Following the claims procedures, complying with the time limitations and taking the necessary steps to avoid a loss are some of the  important steps you can follow if you want your claim to be settled.

“It is extremely important to understand your insurance contract and claim parameters. Every policy sets out your obligations in the event of a claim. This includes the time period within which a claim must be reported to the police and your insurer, what information you must provide to your insurer, as well as the time frame within which to dispute the outcome of a claim

 

For a quotation or assistance with your Short-Term Insurance needs, please contact our office on the following methods:
* Phone             031-5021922
* What’s app       0824508720
* Website           www.esbrokers.co.za

 

Article source: FNB Private Wealth, written by Elizabeth Mountjoy