Young South Africans are quick to insure their first car or replace a broken smartphone, but many overlook the one asset that pays for everything else – themselves.
New claims data from Momentum Life Insurance shows why that mindset needs to change.
According to the insurer’s 2025 claims statistics, 62% of death claims involving people younger than 30 resulted from unnatural causes, with motor vehicle accidents accounting for most of them.
The figures are a reminder that while young people often worry about finding a job, building a career and making ends meet, life’s biggest setbacks can arrive without warning.
George Kolbe, head of life insurance marketing and enablement at Momentum Life Insurance, says the data challenges the belief that financial protection is only necessary later in life.
Many young adults assume they can postpone buying life insurance or income protection until they are married, have children or own a home. But unexpected illness, disability or death can happen long before those milestones are reached.
Kolbe said the question young people should ask themselves is simple: “What happens if ‘later’ never arrives?”
While young adults are generally healthy and recover quickly from common illnesses, they are exposed every day to risks on SA’s roads, at work and in their daily lives.
“One of the most significant risks facing young adults is more likely to come through a windscreen than a medical diagnosis,” Kolbe said.
He believes many young people already understand the value of protecting their possessions but fail to apply the same thinking to their ability to earn an income.
“Young adults rarely question the need for comprehensive vehicle insurance when buying their first car. At the same time, the far more valuable asset – their ability to earn an income and support themselves or their families – is often left uninsured.
“Cover is generally most affordable when you are young and healthy. Delaying cover can therefore result in significantly higher premiums later in life, while also leaving you financially unprotected in the meantime.”
The consequences of going without protection extend beyond the individual.
Many young people become breadwinners soon after entering the workforce, helping parents with household expenses or supporting younger siblings through school or university.
If they die unexpectedly or become permanently disabled, families are often left to carry the financial burden of medical bills, funeral costs and unpaid debt, said Kolbe.
Momentum’s claims data also highlights that life-changing illness and disability can affect young people.
The company’s youngest critical illness claimant in 2025 was a 26-year-old man diagnosed with a debilitating neurological condition that resulted in partial paralysis. Its youngest income protection claimant was a 19-year-old man who was paralysed following a motor vehicle accident.
Kolbe said these cases show that financial planning is not only about death benefits.
Serious illness, disability or injury can occur far earlier than expected, often with life-altering consequences.
— George Kolbe, head of life insurance marketing and enablement at Momentum Life Insurance
“Serious illness, disability or injury can occur far earlier than expected, often with life-altering consequences.”
Kolbe said investing in yourself means more than building skills or earning qualifications. It also means protecting your future earning ability so that one unexpected event does not undo years of hard work.
“If you are old enough to hold a driver’s licence and earn an income, you are old enough to start protecting your financial future,” he said.
According to market research agency KLA , 47% of SA’s Generation Z, aged 19–27, have funeral cover, 31%, have car insurance and 23% have insured their cellphones
Nomvula Nxumalo, executive head for people and transformation at MiWay Insurance, said these findings point to a considerable gap in short-term insurance coverage and knowledge among young South Africans.
“For many young South Africans and first-time earners, there is a clear knowledge gap when it comes to short-term insurance,” she said.
“Too often, the value of short-term insurance only becomes apparent after something has gone wrong, whether that’s a car accident, a stolen phone or unexpected damage to personal belongings.”
Nxumalo said at its core, short-term insurance is designed to protect the things you use and rely on every day. Unlike long-term products such as funeral cover, which are often prioritised due to cultural or family expectations, short-term cover is about managing everyday risks that can have an immediate financial impact.
“Your first salary often comes with competing priorities, from helping at home to covering your own expenses and lifestyle costs,” she said.
“Insurance may not always feel urgent in that mix, but it plays a critical role in protecting what you’ve worked hard to achieve.”
