South African have traditionally focused on Insuring their more dire risks. This is evident in the fact that Disability Lump sum benefits are sold more than 3 times as much as income benefits despite a temporary disability being the most likely risk at every stage of life. According to the Risk reality Survey, 62% South Africans said they had run out of money within 3 months without an income.
This means that most people surveyed would be unable to cover their monthly expenses, facing serious financial consequences. Most Insurance Companies are trying to simplify the financial planning process for both the adviser and then clients by prioritising Income benefits for all risk events and Lump sum benefits for additional expenses.