Planning for unexpected life events is important, but many people are either underinsured for critical illnesses or don’t have cover at all − and there’s a huge risk that comes with that.
“If you don’t have comprehensive insurance in place, the biggest risk is a financial shock,” warns George Kolbe, Momentum Life Insurance head of marketing and enablement.
“A serious illness like cancer or a heart attack or a stroke can bring major costs at exactly the wrong time. Things like medical bills, travel, time off work, and lifestyle changes all come at a cost.”
In SA, between 85,000 and 100,000 new cancer cases are diagnosed every year, and data from Momentum Life Insurance 2025 claims, which was released recently, paints a worrying picture.
The stats show that cancer remained the leading cause of critical illness, and the company revealed that it paid out R6.88bn in 2025 alone for critical illness, disability and income protection among working-age South Africans.
These claims are on the rise.
The insurer’s latest claims experience, says Joretha Bothma, head of Momentum’s product development, underwriting and claims, highlights a shift in the SA risk landscape. “While life insurance is still often associated with death, the data increasingly reflects the financial impact of surviving serious illness, disability, or long-term impairment,” says Bothma.
“To date, Momentum Life Insurance has paid more than R84.8bn in claims. These include a 2025 payout of R6.88bn. Behind the numbers are thousands of families, businesses, and individuals who relied on financial protection during some of life’s most difficult moments.
“Critical illness claims increased by more than 15% year-on-year in 2025, exceeding R1bn for the first time. Cancer remained the leading cause of critical illness claims at 43%, followed by cardiovascular and nervous system conditions.
“Importantly, 87% of Momentum Life Insurance clients who died from cancer or cardiovascular conditions in 2025 did not have critical illness cover in place with the insurer, underscoring a significant protection gap.”
Bothma says these outcomes show that “many South Africans may be financially prepared for death, but not necessarily for the financial consequences of surviving a serious illness”.
Kolbe says claim events can happen to anyone at any time. “It’s clear that people often underinsure for critical illness. Comprehensive planning with an accredited financial adviser matters, and it will make the biggest difference when you really need it. Doing proper health screenings is probably one of the best practical tips I can give,” says Kolbe.
“The cost of insurance is relative. It depends on a number of things like your age, gender, health, and the amount of cover you choose. But for many healthy people, especially when they start young, meaningful cover can cost just a few hundred rand a month. The key message is the earlier you put cover in place, the more affordable it usually is.”
But with the rising cost of living and shrinking salaries, what can you consider scaling down on to cover this insurance?
“We’re now at the hour of competing expenses, so in [one’s] budget, it helps to review non-essential spending first — things like extra subscriptions, ordering takeaways frequently, or committing to luxury expenses," says Kolbe. “Insurance may feel optional until something goes wrong. I have to caution everyone that the cost of not having cover can be far greater than the monthly premium.”
The company paid R602m in lump sum disability claims and about R310m in income protection claims in 2025.
“Musculoskeletal conditions – including back, joint, and mobility-related issues – remained the leading cause of income protection claims, accounting for around one-third of all claims,” says Momentum’s head of claims, Nafeesa Gaida.
“Many of these conditions do not end careers permanently, but they can prevent people from earning an income for extended periods. Income protection plays a critical role in maintaining financial stability during recovery. The claims experience also highlights the unpredictability of disability and impairment across age groups. These cases reinforce that life-changing events can happen at any stage of life.”
Bothma says younger people are exposed to sudden risk. “Among claimants under the age of 30, 62% of death claims resulted from unnatural causes, primarily motor vehicle accidents — a rate five times higher than for clients aged 30 and older.
“Many younger people delay life cover because they believe serious events happen later in life. But a significant proportion of claims arise from sudden, unexpected events unrelated to health.”
Kolbe says one should speak to a financial adviser because getting comprehensive cover is not one size fits all. “It [the cover] looks at your full risk picture, not just one product, and typically, it includes life cover, critical illness cover, disability or income protection, emergency savings, retirement planning, and estate planning.
A truly holistic financial plan is essential to maintaining financial resilience...
— Joretha Bothma, head of Momentum’s product development, underwriting and claims
“It also takes your regular living expenses into account. The best step you can take is to plan properly with the help of an accredited financial adviser.”
He advises that you stay on top of your age-appropriate health screens.
Says Bothma: “A truly holistic financial plans is essential to maintaining financial resilience in an increasingly uncertain world.”
Sowetan
