Consumers urged to review family protection plans post the recession

Following in the wake of the global economic crisis many South African families are struggling with the rising costs of living and are simply unprepared financially for the costs associated with the loss of a family member.

According to a survey conducted by the South African Institute of Race Relations (SAIRR), in 2009, average life expectancy at birth for South Africans is just 51 years.

Jonjon Smit, sales director of CIB Insurance Solutions (CIB), says it is essential that consumers consult their brokers regarding a tailored family protection-focused option as an additional insurance product in their portfolio, in order to safeguard both their family members and future finances.

“The recent credit crunch has brought home to many people what financial dire straits a family could be in should a member pass away due to the costs associated with the emotional trauma of such an event, coupled with its related expenses.

“By contributing a minimal amount monthly to a family protection-focused insurance product, consumers will have the peace of mind knowing that family members are guaranteed a fixed income in the case of a natural or accidental death,” says Smit.

Smit says consumers should choose an affordable plan that covers death by natural and accidental causes and can be expanded to include the insured, the spouse, parents, children and domestic workers. “The South African family dynamic is quite unique and it is important to many of our clients that family protection coverage extends beyond immediate family members.”

Smit says that CIB has noted a demand from its client base for a family protection-focused product that could be added to existing coverage such as household and motor insurance. “Staying within one insurance stable is convenient for many consumers and also offers peace of mind. For these reasons we developed the Family Protection Plan, a customisable product that offers family coverage in the event of death by natural and accidental causes.”