New claims data reveals a significant protection gap among South Africans, with many insured against death but lacking cover for critical illnesses, disability and loss of income.
Image: Henk Kruger/ Independent Newspapers.
South Africans are increasingly facing the financial consequences of surviving serious illnesses rather than dying from them, yet many remain underinsured against these risks, according to new claims data released by Momentum Life Insurance.
The insurer paid out R6.88 billion in claims during 2025, bringing its total claims paid to more than R84.8 billion to date.
Behind those figures are thousands of families, individuals and businesses who relied on financial protection during some of life's most challenging circumstances.
"Behind every claim is a promise honoured," said Joretha Bothma, Head of Product Development, Underwriting and Claims at Momentum Life Insurance.
"And behind every policy is a financial adviser who helped a client put the appropriate protection in place before it was needed."
The latest claims experience points to a changing risk landscape, where the financial burden of surviving a serious illness, disability or long term impairment is becoming just as significant as the risks associated with death.
Critical illness claims increased by more than 15% year on year in 2025, surpassing R1 billion for the first time.
Cancer remained the leading cause of critical illness claims, accounting for 43% of payouts, followed by cardiovascular diseases and nervous system disorders.
However, Momentum's data also revealed a significant protection gap. The insurer found that 87% of clients who died from cancer or cardiovascular conditions during 2025 did not have critical illness cover in place.
"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," said Bothma.
The findings suggest that while many consumers prioritise life cover, they may underestimate the financial impact of prolonged treatment, rehabilitation and the inability to work while recovering from a major health event.
The insurer paid R602 million in lump sum disability claims and approximately R310 million in income protection claims during 2025.
Musculoskeletal conditions, including back injuries, joint disorders and mobility related ailments, remained the leading cause of income protection claims, accounting for roughly one third of all claims submitted.
"Many of these conditions do not end careers permanently, but they can prevent people from earning an income for extended periods," said Nafeesa Gaida, Head of Claims at Momentum Life Insurance.
"Income protection plays a critical role in maintaining financial stability during recovery."
The claims data also highlighted the unpredictable nature of disability and impairment, showing that life changing events can affect people across all age groups and professions.
"These cases reinforce that life changing events can happen at any stage of life," said Gaida.
The report also challenges perceptions that serious financial risks are primarily associated with older age groups.
Among claimants younger than 30, 62% of death claims resulted from unnatural causes, with motor vehicle accidents emerging as the primary contributor.
That figure is five times higher than the rate recorded among clients aged 30 and older.
"Many younger people delay life cover because they believe serious events happen later in life," said Bothma.
"But a significant proportion of claims arise from sudden, unexpected events unrelated to health."
The data underscores the importance of financial planning and risk protection for younger adults, many of whom may not consider insurance a priority until later in life.
Momentum's claims experience also reflects a broader trend linked to advances in healthcare and medical treatment.
As more South Africans survive serious illnesses and injuries, the need for ongoing financial support is increasing.
Claims associated with long term care, cognitive impairment, cancer survival and permanent disabilities rose significantly during 2025.
"We are seeing more clients living with serious conditions for many years," said Bothma.
"While medicine is improving outcomes, it is also extending the period over which financial support is needed."
The insurer believes these trends highlight the need for more holistic financial planning that extends beyond traditional life cover.
Rather than focusing solely on death benefits, consumers are increasingly being encouraged to consider critical illness cover, disability protection and income replacement benefits as part of a comprehensive financial strategy.
"A truly holistic financial plan is essential to maintaining financial resilience in an increasingly uncertain world," said Bothma.
As South Africans navigate rising healthcare costs, economic uncertainty and longer life expectancies, the data suggests that financial preparedness is no longer only about protecting loved ones after death, but also about ensuring stability and security while living through life's unexpected challenges.
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