Underinsured and unaware: What 2024 claims reveal about the cover gaps facing South Africans
Joretha Bothma, head of product development, underwriting and claims at Momentum Life Insurance unpacks how recent claims data confirms what advisers have long suspected: single need life insurance policies are not enough.
When life takes a turn, it rarely does so in isolation.
A cancer diagnosis might be followed by a loss of income.
A stroke can result in time off work and eventually a long-term disability.
The list goes on. And yet, most South Africans still rely on life cover only to carry them through a world of cascading risks.
The reality is that life cover alone is no longer enough – and perhaps, it never was.
The recent Momentum Life Insurance 2024 claims data show that our needs are expansive, especially in the wake of unexpected events and tragedies.
During 2024, 344 Momentum clients received payouts across multiple benefit categories (all the payments did not necessarily happen during the same year).
Together, those layered claims amounted to over R700 million.
That’s not just a single moment of relief, it has a long-term impact, and it’s tangible proof that comprehensive cover works the way life unfolds: in chapters, not in headlines.
Even more striking, the 10 clients with the highest payouts each received more than R25 million.
These payouts were triggered by different events (disability, critical illness and death), at different times.
For these families, multiple benefits weren’t a luxury – they were a lifeline.
And yet…
… far too many people only discover their financial gaps when it’s too late.
Take critical illness, for example. In 2024, 80% of Momentum Life Insurance clients who passed away from a critical illness had no critical illness cover in place with Momentum.
That’s a staggering statistic and a painful reminder that life cover alone doesn’t address the real costs of living with a major illness or disability.
You need to cover potential medical shortfalls, loss of income, lifestyle adjustments, and long-term care.
It’s a pattern that financial advisers know all too well.
Clients believe they’re insured, but the moment something goes wrong, the reality sets in.
With a single-benefit approach, they are dangerously exposed.
In today’s high-pressure economy, that risk is only increasing.
As households cut back on spending, insurance is often viewed as a negotiable grudge purchase or optional expense.
However – cutting the wrong type of cover – or failing to establish comprehensive protection in the first place could ultimately cost much more in the long run.
Life isn’t one dimensional so why should insurance be?
A proper financial plan includes all the pillars of risk protection:
- Life cover, to provide for your loved ones after death
- Critical illness cover, to help you survive and recover
- Disability cover, to support your ability to adapt and rebuild
- Income protection, to ensure continuity when you can’t earn
A comprehensive financial plan isn’t just theory – it’s a survival strategy.
But it’s also a wake-up call for the industry.
The 2024 claim stats confirm what many advisers have long championed: comprehensive, layered protection delivers better outcomes for clients.
Advisers are central to that conversation.
They are the ones who ask the hard questions, identify the blind spots, and help build resilience into every portfolio.
Momentum’s role? To back those promises with action.
The insurer paid R6,6 billion in life insurance in 2024. That is a testament to both reliability and the long-standing trust of our clients.
In the end, even with a strong partner and clear data-backed insights, the hardest step is often the first one: sitting down and asking, ‘What am I missing?’
Insurance isn’t just about preparing for the worst.
It’s about ensuring you have the right cover when life throws more than one challenge your way, which is more often than we care to admit to ourselves.
So, the question is: what’s in your financial portfolio?
And more importantly, what might be missing?
Loading ...
