The global pandemic has driven home various lessons but mainly that life is uncertain and the unexpected can happen at any moment.
Heading into another year, many people — especially breadwinners who want to ensure that their families are cared for after they pass on — it is critical to be reminded of the advice given during a period when times were more certain than now.
While we can’t avoid certainties like death, we can prepare for eventualities to ensure that those left behind can mourn without added financial burdens and worries about financial constraints.
Statistics show that Covid continues to take its toll. Reports show that death claims increased by 127% in the third wave and the life insurance industry witnessed the impact of the pandemic first-hand. In the first two waves (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.
These statistics from our neighbouring country are a real eye-opener for us to be more vigilant and to prepare while time still allows.
Funeral Benefits
Where employers haven’t had this type of cover for all staff previously, insurers are looking to introduce funeral benefits. There has also been a need for funeral cover to provide benefits not only for the member, spouse, and children, but to extend to other family members including parents — deemed important especially in rural settings.
A few ways to avoid the high costs of severe illnesses include:
- Continue screening for serious illnesses. One of the lingering impacts of coronavirus is the drop in preventative testing and screening of other illnesses, especially cancer.
- Keep healthy by managing chronic conditions, not smoking, and maintaining a healthy body weight. This will make your life cover premiums more affordable.
- Reviewing your financial plans is the best way to keep your house intact. Review your plans to add extra emergency savings and ensure you have suitable insurance including life and funeral cover before it’s too late.
Disability Cover
Apart from life and funeral cover, Covid has changed the game for disability insurance as well. For years, financial advisors and experts have emphasised the importance of financial planning and preparing for the unexpected. By having insurance protection in place before you get sick or injured you can safeguard your income and your family.
New waves and preparedness must be considered if you have not done so already. Consider meeting with a trusted financial advisor to discuss your options. At Namforce, we encourage all to act sooner rather than later. Seek the best options that are affordable for you and most convenient.
Martin Shaanika is the Managing Director of Namforce Life Insurance Ltd.
