Life cover, funeral cover, disability cover: Most important during global pandemic
The global pandemic has driven home various lessons, but mainly it is that life is uncertain and the unexpected can happen at any moment.
We have witnessed many lives lost to Covid-19. Heading into another year living with Covid, most people - especially breadwinners - want to ensure that their families will be cared for after they die, and it is critical to be reminded of advice given during a period where times were more certain than now.
While we cannot avoid certainties like death, we can prepare for them to ensure those left behind can mourn without added financial burdens.
Covid-19 is an ongoing health catastrophe and will continue to be.
Reports have shared that death claims increased by 127% during the third wave of the pandemic, and the life insurance industry saw its impact first-hand.
During the first two waves of Covid-19 (April 2020 to March 2021), death claims increased by 64% in rand value, according to the Association of Savings and Investment South Africa (ASISA). The third wave (April 2021 to September 2021) saw death claims increase by 127% in rand value.
In the same six months in 2019, prior to Covid-19, insurers received just under 370 000 death claims. During the third wave, there were over 565 000 death claims.
With so many statistics seen through our neighbouring country South Africa, this is a real eye-opener for us to become more vigilant and aware of preparedness while time still allows.
Although times were tough financially, the importance of life insurance and funeral cover was never more evident, as seen through alarming figures reported by ASISA.
If there are a few observations to take note of, we can see an increased focus on the importance of funeral benefits. Where employers haven’t had this type of cover for all staff previously (for example, where contract workers aren’t covered for funeral benefits), insurers are looking to introduce funeral benefits.
There has also been a need for funeral cover to provide benefits for not only the member, spouse and children, but to extend this to other family members, which is deemed important especially for more rural settings.
The pandemic not only continues to be an emotionally and mentally devastating period, it also has severely dented our pockets with the health risks it has shown, at a time when we can least afford it.
A few ways to avoid the high costs of Covid-19 and other severe illnesses it comes along with include:
• Keep screening for serious illnesses. One of the lingering impacts of the pandemic has been the drop in preventative testing and screening – especially for illnesses such as cancer. Keeping healthy through managing chronic conditions, not smoking, as well as reaching and maintaining a healthy bodyweight will make your life cover premiums more affordable.
• Review your financial plans. This is the best way to keep your house intact. Review your financial plans to see how you can add additional emergency savings into your budget and ensure you have suitable insurance - including life and funeral cover - before it's too late.
• In addition, apart from life and funeral cover, Covid-19 has changed the game for disability insurance as well. For years, financial advisors and experts have been lending sound advice which emphasises the importance of financial planning and preparing for the unexpected. It’s the only way to help safeguard your income and your family by having insurance protection in place before you get sick or injured especially, during such uncertain times we’re living in.
Last year, the Social Security Administration in South Africa estimated that a 20-year-old has a one in four chance of becoming disabled before they reach retirement age. With such a high estimated chance of becoming disabled, it is an eye-opener and a reminder of why products put on the market to help in such difficult moments should be embraced.
Due to the pandemic, insurers are still trying to determine how to verify some issues from ‘long Covid’. Unfortunately, some have been denied disability benefits, despite being unable to work due to such symptoms caused by Covid-19 and it is critical to get regular check-ups and declare symptoms and family history prior to Covid.
Fortunately, the medical sector is developing better tests to properly diagnose these issues for claims.
In conclusion, expectation for any new waves and preparedness in the new year must be highly considered or even reviewed, if not already. Consider meeting with a trusted financial advisor to discuss your options. At Namforce, we encourage everyone to act sooner rather than later. When Covid-19 first hit, it happened so quickly that people didn’t recognise the need until it was too late. Seek the best options that are affordable to you, and most convenient.
We have witnessed many lives lost to Covid-19. Heading into another year living with Covid, most people - especially breadwinners - want to ensure that their families will be cared for after they die, and it is critical to be reminded of advice given during a period where times were more certain than now.
While we cannot avoid certainties like death, we can prepare for them to ensure those left behind can mourn without added financial burdens.
Covid-19 is an ongoing health catastrophe and will continue to be.
Reports have shared that death claims increased by 127% during the third wave of the pandemic, and the life insurance industry saw its impact first-hand.
During the first two waves of Covid-19 (April 2020 to March 2021), death claims increased by 64% in rand value, according to the Association of Savings and Investment South Africa (ASISA). The third wave (April 2021 to September 2021) saw death claims increase by 127% in rand value.
In the same six months in 2019, prior to Covid-19, insurers received just under 370 000 death claims. During the third wave, there were over 565 000 death claims.
With so many statistics seen through our neighbouring country South Africa, this is a real eye-opener for us to become more vigilant and aware of preparedness while time still allows.
Although times were tough financially, the importance of life insurance and funeral cover was never more evident, as seen through alarming figures reported by ASISA.
If there are a few observations to take note of, we can see an increased focus on the importance of funeral benefits. Where employers haven’t had this type of cover for all staff previously (for example, where contract workers aren’t covered for funeral benefits), insurers are looking to introduce funeral benefits.
There has also been a need for funeral cover to provide benefits for not only the member, spouse and children, but to extend this to other family members, which is deemed important especially for more rural settings.
The pandemic not only continues to be an emotionally and mentally devastating period, it also has severely dented our pockets with the health risks it has shown, at a time when we can least afford it.
A few ways to avoid the high costs of Covid-19 and other severe illnesses it comes along with include:
• Keep screening for serious illnesses. One of the lingering impacts of the pandemic has been the drop in preventative testing and screening – especially for illnesses such as cancer. Keeping healthy through managing chronic conditions, not smoking, as well as reaching and maintaining a healthy bodyweight will make your life cover premiums more affordable.
• Review your financial plans. This is the best way to keep your house intact. Review your financial plans to see how you can add additional emergency savings into your budget and ensure you have suitable insurance - including life and funeral cover - before it's too late.
• In addition, apart from life and funeral cover, Covid-19 has changed the game for disability insurance as well. For years, financial advisors and experts have been lending sound advice which emphasises the importance of financial planning and preparing for the unexpected. It’s the only way to help safeguard your income and your family by having insurance protection in place before you get sick or injured especially, during such uncertain times we’re living in.
Last year, the Social Security Administration in South Africa estimated that a 20-year-old has a one in four chance of becoming disabled before they reach retirement age. With such a high estimated chance of becoming disabled, it is an eye-opener and a reminder of why products put on the market to help in such difficult moments should be embraced.
Due to the pandemic, insurers are still trying to determine how to verify some issues from ‘long Covid’. Unfortunately, some have been denied disability benefits, despite being unable to work due to such symptoms caused by Covid-19 and it is critical to get regular check-ups and declare symptoms and family history prior to Covid.
Fortunately, the medical sector is developing better tests to properly diagnose these issues for claims.
In conclusion, expectation for any new waves and preparedness in the new year must be highly considered or even reviewed, if not already. Consider meeting with a trusted financial advisor to discuss your options. At Namforce, we encourage everyone to act sooner rather than later. When Covid-19 first hit, it happened so quickly that people didn’t recognise the need until it was too late. Seek the best options that are affordable to you, and most convenient.
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