Discovery Life's claims payouts protect clients' lives as they navigate uncertainties

Over the past 23 years, Discovery Life has shown the true value of insurance, in providing comprehensive protection against today's risks. In 2023, R8.4 billion in life insurance claims was paid out to almost 9,000 individuals across group risk and individual life policies.

The value of living benefits

The R6.4 billion paid out to individual life clients in 2023 included almost R3 billion for death claims, R1.5 billion for severe illness claims, R1 billion in disability claims and R613 million under the Income Continuation Benefit.

Although death claims make up most of the claims, Discovery Life paid out over 50% of claims for illnesses, disabilities and loss of income. This was compared with an industry average of 22% of payouts for living benefits. The combined value of all living benefits that Discovery Life paid out while a person is still alive is higher because of the unique Shared-value Insurance model. "Our 2023 claims experience shows that 1 in 5 life-cover claimants had already claimed for a different life-changing event before they passed away," says Discovery Life's head of research and market analytics, Kashmeera Kanji.

Kanji adds that most people who survive these life-changing events need to make costly adjustments to continue enjoying their lives afterwards. Many clients use these payouts for home adaptions, assistive devices and numerous doctors' visits. "Once you see someone in need of these adaptions, you really start to appreciate the value of having life cover at all ages," adds Kanji.

Proactive claims feature helps to fast-track claims

A small portion of the claims paid out in 2023 were a result of proactive claims management. The feature kickstarts the claim process for clients who are members of Discovery Health Medical Scheme. "We noticed that clients might not know that they have a valid claim or are not thinking of claiming while going through medical life-changing events," says Kanji, adding that this has helped to accelerate claims for these clients.

The Shared-value Insurance model helps clients financially in a tough economy

With more clients adopting healthy lifestyles and financial habits, Discovery Life has paid R11.8 billion in PayBacks to date, R2.5 billion in Cash Conversions to date and, in 2023, clients enjoyed R1.9 billion in premium savings through Integration with other Discovery products. Discovery Life is projected to pay R2.9 billion towards tertiary education through the University Funder Benefit over the next 21 years, where clients have not claimed but have actively engaged in healthy behaviours to fund their children's education.

R69 million to help parents secure their children's education

With the growing concern parents have about securing their children's education, Discovery Life's Global Education Protector covers the actual costs of a child's education from crèche to tertiary education, if you or your spouse passes away or becomes severely ill or disabled. In 2023, Discovery Life paid out R69 million under the Global Education Protector benefit, with 598 children receiving payouts on individual policies.

The value of comprehensive cover

In navigating life's highs and lows, it's important to make informed decisions about your life insurance cover based on the unique challenges that you face, so that you have adequate financial protection to protect your wellbeing and that of the people you care about the most.

Visit our claims website here to explore life insurance claims and insights tailored for your unique needs.

Learn more about Discovery Life's suite of protective cover and benefits.