{"id":830925,"date":"2025-07-10T07:37:59","date_gmt":"2025-07-10T05:37:59","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=830925"},"modified":"2025-07-10T08:16:42","modified_gmt":"2025-07-10T06:16:42","slug":"underinsured-and-unaware-what-2024-claims-reveal-about-the-cover-gaps-facing-south-africans","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/industry-news\/830925\/underinsured-and-unaware-what-2024-claims-reveal-about-the-cover-gaps-facing-south-africans\/","title":{"rendered":"Underinsured and unaware: What 2024 claims reveal about the cover gaps facing South Africans"},"content":{"rendered":"\n<p><em>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.<\/em><\/p>\n\n\n\n<p>When life takes a turn, it rarely does so in isolation. <\/p>\n\n\n\n<p>A cancer diagnosis might be followed by a loss of income.<\/p>\n\n\n\n<p>A stroke can result in time off work and eventually a long-term disability.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.momentum.co.za\/momentum\/personal\/life-insurance?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_term=July+2025\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Click here to learn more about Momentum Life Insurance.<\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<p>The list goes on. And yet, most South Africans still rely on life cover only to carry them through a world of cascading risks.<\/p>\n\n\n\n<p>The reality is that life cover alone is no longer enough \u2013 and perhaps, it never was.<\/p>\n\n\n\n<p>The recent Momentum Life Insurance 2024 claims data show that our needs are expansive, especially in the wake of unexpected events and tragedies.<\/p>\n\n\n\n<p>During 2024, 344 Momentum clients received payouts across multiple benefit categories (all the payments did not necessarily happen during the same year).<\/p>\n\n\n\n<p>Together, those layered claims amounted to over R700 million. <\/p>\n\n\n\n<p>That\u2019s not just a single moment of relief, it has a long-term impact, and it\u2019s tangible proof that comprehensive cover works the way life unfolds: in chapters, not in headlines.<\/p>\n\n\n\n<p>Even more striking, the 10 clients with the highest payouts each received more than R25 million. <\/p>\n\n\n\n<p>These payouts were triggered by different events (disability, critical illness and death), at different times. <\/p>\n\n\n\n<p>For these families, multiple benefits weren\u2019t a luxury \u2013 they were a lifeline.<\/p>\n\n\n\n<p>And yet\u2026<\/p>\n\n\n\n<p><strong>\u2026 far too many people only discover their financial gaps when it\u2019s too late.<\/strong><\/p>\n\n\n\n<p>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. <\/p>\n\n\n\n<p>That\u2019s a staggering statistic and a painful reminder that life cover alone doesn&#8217;t address the real costs of living with a major illness or disability. <\/p>\n\n\n\n<p>You need to cover potential medical shortfalls, loss of income, lifestyle adjustments, and long-term care.<\/p>\n\n\n\n<p>It\u2019s a pattern that financial advisers know all too well. <\/p>\n\n\n\n<p>Clients believe they\u2019re insured, but the moment something goes wrong, the reality sets in. <\/p>\n\n\n\n<p>With a single-benefit approach, they are dangerously exposed. <\/p>\n\n\n\n<p>In today\u2019s high-pressure economy, that risk is only increasing. <\/p>\n\n\n\n<p>As households cut back on spending, insurance is often viewed as a negotiable grudge purchase or optional expense. <\/p>\n\n\n\n<p>However &#8211; cutting the wrong type of cover &#8211; or failing to establish comprehensive protection in the first place could ultimately cost much more in the long run.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/07\/Joretha-Bothma-In-Article-Image.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/07\/Joretha-Bothma-In-Article-Image-1024x576.png\" alt=\"\" class=\"wp-image-830954\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/07\/Joretha-Bothma-In-Article-Image-1024x576.png 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/07\/Joretha-Bothma-In-Article-Image-300x169.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/07\/Joretha-Bothma-In-Article-Image-768x432.png 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/07\/Joretha-Bothma-In-Article-Image.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption class=\"wp-element-caption\">Joretha Bothma, head of product development, underwriting and claims at Momentum Life Insurance<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Life isn\u2019t one dimensional so why should insurance be?<\/h2>\n\n\n\n<p>A proper financial plan includes all the pillars of risk protection:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Life cover<\/strong>, to provide for your loved ones after death<\/li>\n\n\n\n<li><strong>Critical illness cover<\/strong>, to help you survive and recover<\/li>\n\n\n\n<li><strong>Disability cover<\/strong>, to support your ability to adapt and rebuild<\/li>\n\n\n\n<li><strong>Income protection<\/strong>, to ensure continuity when you can\u2019t earn<\/li>\n<\/ul>\n\n\n\n<p>A comprehensive financial plan isn\u2019t just theory &#8211; it\u2019s a survival strategy.<\/p>\n\n\n\n<p>But it\u2019s also a wake-up call for the industry. <\/p>\n\n\n\n<p>The 2024 claim stats confirm what many advisers have long championed: comprehensive, layered protection delivers better outcomes for clients. <\/p>\n\n\n\n<p>Advisers are central to that conversation. <\/p>\n\n\n\n<p>They are the ones who ask the hard questions, identify the blind spots, and help build resilience into every portfolio.<\/p>\n\n\n\n<p>Momentum\u2019s role? To back those promises with action. <\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>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, \u2018What am I missing?\u2019<\/p>\n\n\n\n<p>Insurance isn\u2019t just about preparing for the worst.<\/p>\n\n\n\n<p>It\u2019s 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.<\/p>\n\n\n\n<p>So, the question is: what\u2019s in your financial portfolio?<\/p>\n\n\n\n<p>And more importantly, what might be missing?<\/p>\n\n\n\n<p><a href=\"https:\/\/www.momentum.co.za\/momentum\/personal\/life-insurance?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_term=July+2025\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Click here to learn more about Momentum Life Insurance.<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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. <\/p>\n","protected":false},"author":57,"featured_media":830967,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10459],"tags":[23072,4023,6652,23071],"class_list":["post-830925","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","tag-financial-portfolio","tag-insurance","tag-momentum","tag-momentum-life-insurance"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/830925","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=830925"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/830925\/revisions"}],"predecessor-version":[{"id":831038,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/830925\/revisions\/831038"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/830967"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=830925"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=830925"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=830925"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}