Why January is the perfect time to reassess your life insurance

January is when many people take stock of their circumstances. From reassessing budgets to setting goals, consumers evaluate if their financial plans still fit their lives. It’s also a natural moment to revisit life insurance, not as a grudge purchase, but as a practical tool to protect what matters most to you.

Life insurers play a critical role in household resilience. Every year, South African life insurers pay out hundreds of billions of rands to families facing death, disability, severe illness, or loss of income. According to the Association for Savings and Investment South Africa (ASISA), by June 2025, 12.8 million policies provided cover for life, disability, severe illness, and income protection to consumers in the country.

This reflects a growing awareness that financial security is not optional; it’s foundational.

The question that really matters

Life insurance isn’t just about death benefits or monthly premiums. It’s about certainty.

Ask yourself:

• Would your family cope financially if your income stopped tomorrow?
• How would illness or disability affect your lifestyle and long-term plans?
• Do you have protection that supports you while you’re alive, not only when you’re gone?

The real value of life insurance lies in peace of mind. It ensures that your family’s future, dignity, and choices remain intact when life takes an unexpected turn.

Why many people still delay cover

Despite its significance, many people put off getting life insurance, and often for the wrong reasons. A 2025 Legal & General study found that consumers significantly overestimate the cost of life insurance by as much as 184% in some markets.

While the study was UK-based, the insight is universal. Perceived cost remains one of the biggest barriers to uptake, even though cover is often far more affordable than people expect. Younger adults are especially likely to delay getting cover. Research from LIMRA shows that people under 40 don’t reject life insurance; they reject products that feel:

• Poorly aligned to their life stage (32%)
• Too expensive (28%)
• Lacking immediate, tangible benefits (25%).

The reality in South Africa

Life insurance delivers real financial support when people need it most. By mid-2025, South African life insurers held 36.8 million risk policies:

• Nearly 17 million funeral policies
• Just over 7 million credit life policies
• 12.8 million policies covering life, disability, severe illness, and income protection.

Globally, demand is growing too. Swiss Re forecasts life insurance premiums to grow by around 3% annually through 2026, which is more than double the pace of the previous decade. The message is clear: people want protection, but they want it on their terms.

Why life insurance needs to keep up with your needs in 2026

At its heart, life insurance answers a simple but powerful question: what happens to the people you love if you can’t provide for them? In 2026, it also answers a broader one: how do you protect your income, lifestyle, and peace of mind today and in the future?

Life insurance pays out in real terms, at real moments of need. The challenge now isn’t whether it works, but whether consumers have cover that can precisely match their needs at the start and change with them as their lives change.

* Van der Westhuizen is the chief financial officer at BrightRock.

PERSONAL FINANCE