By: Natasha Archary
Gareth Friedlander, a member of the ASISA Life and Risk Board Committee joins Gugulethu Mfuphi on Kaya Biz to share more on the R599 billion in life insurance claims that was paid out in 2023.
This is the second highest payout in a year on record, with the highest being in 2021 due to the effects of Covid-19.
Payouts were made following tragic life events like death and disability or significant life stage changes like retirement.
Payments made to policyholders and beneficiaries included retirement annuity and endowment policy benefits as well as claims against life, disability, critical illness and income protection policies.
“Life insurance is often thought to mean if you die your loved ones get paid out, but it’s actually more than that. There’s a wide range of life-changing events that you can get covered for, and that’ something you have to think about as a consumer.
What happens if I get disabled and I can’t work and I’m the breadwinner for my family?
Or I become severely ill and I need treatment or someone in my family does? So, there is number of policies available to meet clients’ needs.
There were 43.8 million risk and savings policies from policyholders at the end of 2023 which went up marginally from 43.2 million in 2022.”
Friedlander says the cost of living, high interest rates and rising fuel price are some of the contributing factors that might lead to policyholders stopping their life insurance policies and cashing out their life’s savings.
This was also a trend during Covid-19, and he cautions against doing this, saying this should always be a last resort to making ends meet.
Listen to the conversation on Kaya Biz:
Also read: Damelin, Icesa City Campus, Lyceum College, and City Varsity deregistered
