Young and underinsured: Here's why young employed people need life insurance

Having life insurance can give you peace of mind by providing financial protection for your future self.

If you're a young, income-earning person, have you thought about what would happen if you were unable to work and didn't get that salary or side hustle money, possibly for the long term? What's your plan to keep supporting the fam and paying for your medical aid, rent or home loan, subscriptions, and those Pilates or gym sessions?

The 2022 ASISA Life and Disability Insurance Gap Study found that income earners younger than 30 are most likely to be underinsured. Being underinsured means that you may not be able to maintain your lifestyle if a life-changing happens to you. Here's the tea:

Concerning health data for Millennials and Gen Z

Upper-middle income countries like Brazil and South Africa have seen cancer rates increase by 53% over the past 30 years for people aged 15 to39. Discovery Life's 2023 Annual Claims Experience has also found some interesting insights. Skin cancer was the leading cause of Severe Illness Benefit cancer claims for women aged 21 to 30 and men aged 31 to 40.

For clients aged 18 to 30, the top three causes of life cover claims (where people have passed away and their loved ones have received a payout) were for cancer, heart and artery conditions, and motor vehicle accidents.

Two in five of Income Continuation Benefit claims (which protects your income when you can't work due to illness or disability) paid in 2023 were to clients aged 40 or younger. This is particularly important protection since the potential loss in earnings of these clients is the greatest. 31% of this age group were claiming for permanent conditions, which accounted for 77% of the payments made to the group.

The cold, hard numbers? The ASISA study revealed that earners younger than 30 face an average insurance shortfall of R1.6 million for life cover and R1.7 million for disability.

So what can you do?

The average monthly salary in South Africa as at November 2023, is almost R27 000, according to Statistics South Africa. According to the ASISA study, the cost to close the death and disability insurance gap would be 7.1% of earnings. Join Discovery Life and get life insurance cover from R200* per month. Don't you think that's a small price to pay for financial security and peace of mind?

Protect your future self today with Discovery Life insurance

When you join Discovery Life, you can get comprehensive cover for disability, severe illness, loss of income, and death. Plus, our life insurance can be activated in under 30 minutes**.

With Discovery Life, you can view your life insurance policy details and instantly track your rewards on the Discovery app 24/7 from anywhere in the world.

With rising health risks and a significant insurance gap among young South Africans, being underinsured creates uncertainty. Comprehensive life insurance cover today is a step towards a financially secure tomorrow.

Learn more about Discovery Life's suite of protective cover and benefits that reward healthy living and safeguard your financial future.