What kind of insurance do you really need?

Insurance is based on the "what-if fears" of life. Some are more realistic than others, such as, what if my car gets stolen, my house burns down or I lose my job? Other cheap life insurance cover prey on the scared-cats inside us: what if my beloved dog needs a major operation, a tornado rips through my daughter's wedding marquee or a pothole causes me to flip my car?
TIP: You need to compare insurance quotes before committing to anything.
It's time for a reality check: In these cash-strapped times it's best to take a rational look at your insurance needs and sift out the unnecessary ones. Health insurance, home contents and motor vehicle policies are necessary. It's all a matter of choices and consequences, but for starters you can probably do without the following:

Electrical Goods....come with one-year warranty so why pay more for additional cover?

Credit Insurance.....the premise here is that when you die the insurer will settle all your debt, but the premiums are included in your monthly payments - with interest.
You would be better off with a single life policy to cover all debts upon death. But its generally only parent who feel they need a life policy.

Cell phone and other Bling Insurance....All risks cover and excess payments are expensive. Bear in mind too, that a large percentage of the premium goes to administrative costs. Rather take more care of your belongings. Keep you cell phone, handbags and laptop out of sight.

Critical-Illness' Insurance....This might be nice to have but it is not essential - especially if you have maxed out your overdraft. Rather stick to a disaster management plan of disability cover, hospital cover and monthly income protection. The Road Accident Fund was amended on 1 August last year and now caps loss of earnings for victims at a set rate - R167 000 per annum - which translates to about R9 000.00 a month after tax, regardless of your actual income or future earnings.

And before you rush out and buy an income-protection policy, check with your employer: most company pension funds include disability cover (although not always 100 percent of your salary). But if you are self-employed you should look into taking out income protection cover.
TIP: Before you open up any pension fund, make sure you compare pension funds.