While most South African’s recognise the importance of including risk cover as a part of their personal financial portfolio, it is important that consumers realise there are many more aspects to consider when selecting suitable cover for life, income prot
That’s according to Nicholas van der Nest, Divisional Director for Risk Products at Liberty Life, who urges South African consumers to consider the bigger picture when weighing-up their options for risk cover. “The cost of a life insurance policy is only one component,” he explains, “and it is equally important that you are able to fully understand what you are buying, trust the honesty and integrity of the insurer you are buying from, and look forward to a positive experience should you ever have to claim on your policy.”
For all these reasons, van der Nest cautions consumers against simply buying the first or cheapest risk policy that is offered to them. “Anyone can sell you a policy,” he emphasises. “However, when it comes to something as important as protecting your financial security and that of your loved ones, you need more than a sales pitch - you need high quality advice and the assurance that the cover solution you choose will deliver what it promises.”
He explains that the long-term success of Liberty in the South African risk protection space is a direct result of its ability to deliver on these two vital requirements. “Liberty’s accredited financial advisers are mandated to clearly understand the needs of their clients and then offer them tailored solutions to meet those needs,” he points out. “Because those clients are receiving the most appropriate risk cover products, they know they can expect a positive experience if and when the time comes to claim on their policy.”
van der Nest has the statistics to back up this claim. In 2011 alone, the South African assurance giant paid out R2.6 billion in claims - R2 billion on life cover policies, R327 million on income protection, and R266 million for critical illness claims.
According to Liberty’s 2011 claims statistics, approximately 71% of critical illness claims paid were in respect of the big three claims categories: cancer, cardiovascular diseases and strokes.
Other interesting observations include:
- Motor vehicle accidents which represents 19% of all claims received within the first three years of cover,
- Suicide claims continue to be a major contributor to overall death claims at approximately 6% of claims, and
- Mental illness disability claims which represented 10% of overall disability claim payments for 2011.
“Apart from demonstrating that Liberty lives up to its promises made to policyholders, these statistics show the value in Liberty’s comprehensive advice-based approach to risk cover,” he explains, “which allows us to effectively partner with our clients, through their financial advisers, to ensure that they have the right cover, for the right issues, and at exactly the right time of their lives.”
”We do not believe that clients are adequately aware of the risks that they face on a daily basis. Younger clients consider their risk of suffering a critical illness or becoming disabled very low. However, our claims statistics suggest that those between the ages of 35 and 49 are most at risk of claiming for these conditions,” van der Nest adds. “In this respect, our advice is fairly simple - it is never too early or too late to ensure you are correctly and adequately covered.”
Liberty was the first life insurer in South Africa to publish its claim statistics and, according to van der Nest, the reasons for doing so extend beyond mere disclosure and transparency.
“So, while Liberty is, and always has been committed to offering all South African’s the most affordable risk cover possible,” he concludes, “our first priority will always be to make sure our clients know that, when they deal with Liberty, they aren’t just buying a policy, they are ensuring their financial security and certainty at those times when they need it most.”