Warning to South Africans who want to leave the country

Experts warned that South Africans planning to emigrate should not cancel their insurance policies too soon, as failing to maintain cover or update insurers before assets are legally transferred can lead to major financial risks and invalid claims.

Emigrating is one of the most significant financial decisions someone can make. Between selling your assets, moving belongings, and settling in a new country, it’s easy to overlook the finer details.

One thing that needs to be considered is insurance, and when an emigrant needs to cancel their South African policies.

This decision requires careful planning, since cancelling too quickly or failing to update insurers can leave emigrants exposed at a time when they can least afford it.

“Your South African insurance should remain in place until your assets are officially transferred into their new ownership, even if you’ve already left the country by this time,” said Wynand van Vuuren, client experience partner at King Price Insurance.

“Many people think they can cancel their policies the moment they book their flights, but doing this can create unnecessary financial risk.”

When it comes to car insurance, this should be kept active until the vehicle is legally transferred to the new owner. “If a car is still registered in your name, you’re still liable for what happens to it,” Van Vuuren explained.

The same applies to home insurance. Those selling their homes should keep their insurance in place until the property is registered in the new owner’s name.

Those who plan to rent their property out should cancel their home contents cover once their furniture is sold or shipped abroad, but they should maintain the buildings insurance.

On the other hand, emigrants keeping their South African property as a base for visits should check their policy’s terms and conditions.

This is because many insurers limit cover if a house is unoccupied for more than a set number of consecutive days.

When it comes to moving home contents, most insurers offer cover for accidental damage while goods are moved by a registered removal company inside South Africa.

However, this cover likely ends once an emigrant’s possessions cross the border. After that, they must arrange cover through international movers or a new insurer abroad.

Avoid expensive, unexpected setbacks

When it comes to life insurance, Van Vuuren explained that these policies often remain valid once they move overseas.

However, terms will differ between providers. Some policies may carry restrictions depending on where the client lives, and full disclosure is key.

“If you don’t tell your insurer that you’ve emigrated, or if you fail to update your residency status and contact details, you risk jeopardising future claims, as well as the validity of certain policies,” Van Vuuren warned.

Medical aid cover also requires special attention. South African medical schemes generally only cover treatment inside South Africa, unless the client is overseas temporarily.

This means emigrants will need to arrange new health insurance when they’re permanently in a new country, while also considering whether to maintain their South African membership for when they visit.

Emigrants should also consider that most short-term insurers require at least 30 days’ written notice before cancellation.

However, cancelling too early can leave them without cover if their car, home or possessions haven’t transferred to their new owners, as well as if their belongings are still in their name.

The bottom line, Van Vuuren cautioned, is that if an emigrant does not have a policy in place, they can’t claim.

It’s equally important that emigrants give their insurer updated contact details and banking information if they plan to keep any policies active in South Africa. By doing so, they help to avoid disputes or payment lapses.

For South Africans heading abroad, understanding the fine print of their insurance can mean the difference between a smooth relocation and expensive, unexpected setbacks, Van Vuuren stressed.

“Emigration is a massive transition, but your insurance sometimes can’t move with you, and it’s important to remain covered. If you don’t plan ahead, or if you cancel too soon, the risks can be significant,” he said.