Long-Term & Short-Term Insurance

Under South African law, insurance is categorized into two main types: long-term and short-term insurance. Long-term insurance, governed by the Long-term Insurance Act 52 of 1998, covers policies that provide financial protection over an extended period, typically for life events such as death, disability, and retirement. Examples include life insurance, disability insurance, and annuities. These policies are designed to offer financial security and benefits payable upon specific events, such as death or maturity of the policy. On the other hand, short-term insurance, regulated by the Short-term Insurance Act 53 of 1998, provides coverage for risks over a shorter duration, usually a year or less, and includes policies such as car insurance, property insurance, and health insurance. These policies are intended to protect against unforeseen events or accidents that result in financial loss or damage to assets. Both types of insurance are overseen by the Financial Sector Conduct Authority (FSCA), ensuring compliance with regulations and protecting policyholders' rights. Contact us to receive a free short-term insurance quote.