What happens to your family’s income if you’re no longer here to provide it?
It’s a difficult question — but one that’s too important to ignore. Without proper financial planning, your loved ones could be left facing not only the heartbreak of losing you but also the burden of financial uncertainty. The good news? Life cover is a simple, affordable way to protect their future and give you peace of mind today. In this blog, we’ll show you how it works — and why it matters more than ever.
Life insurance in South Africa
South Africa is a leader on the continent when it comes to insurance, boasting the largest and most established insurance market in Africa. Around 60% of South Africans report having some form of insurance, according to the 2022 Financial Sector Conduct Authority (FSCA) Financial Sector Outlook Study.
Much of South Africa’s insurance market consists of funeral products, leaving life insurance cover lacking. When funeral insurance is excluded, the number of people with life insurance drops significantly. In fact, only 10% of South African consumers have life insurance beyond funeral cover, according to the FSCA study—a decrease from 12% in 2019. This highlights a concerning gap in long-term financial protection for many South Africans.
Joretha Bothma, Head of Product Development, Underwriting and Claims at Momentum Life Insurance, says, “Life cover (also known as a death benefit) offers lasting security and financial peace of mind. It can provide protection for a lifetime, or be tailored to specific needs, such as covering a home loan or ensuring your children’s education is provided for.”
Life cover benefits
Momentum Life Insurance offers a range of life cover benefits tailored to different needs. For example, a traditional life cover benefit pays a lump sum amount to your beneficiaries in the event of your death, whereas the Education Protector Benefit ensures that your children’s education costs are covered in the event of a tragedy. If you don’t claim under this benefit, your premiums are refunded at the end of the policy term, helping to supplement your child’s university funding. Meanwhile, the Funeral Benefit provides up to R100 000 within one working day of the insured person’s passing, easing immediate financial burdens.
“Financial protection is one of the greatest gifts you can give your partner and family,” says Bothma. “Life cover provides a financial cushion for families when they need it most. The ability to provide a lump sum payout upon death offers significant peace of mind in a time of grief.”
Advice for choosing life cover
With 23 years of experience in the industry, Bothma shares key advice if you’re considering life cover.
“Life cover is one of the most effective ways to safeguard your loved ones’ financial futures. Even after you're gone, your love continues to shine through, ensuring your family remains financially secure.”
~ Joretha Bothma, Head of Product Development, Underwriting, and Claims at Momentum Life Insurance.
Bothma encourages couples and families to have meaningful discussions about life cover. “Talk to a financial adviser to understand your needs and consider how life cover can be a lasting testament of your commitment to your family’s security.”
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