Jaco Gouws, Protection Marketing Manager at Old Mutual.
Claims statistics released by Old Mutual this week highlight the diverse range of illnesses, disabilities and deaths that befall South Africans each year, and emphasises the importance for people to ensure they have appropriate risk cover in place that will provide them and their families with the necessary financial security, should one or more of these events occur.
Jaco Gouws, Protection Marketing Manager at Old Mutual, says that of the R3.4 billion in claims paid out by Old Mutual through some policies in 2014, R2.6 billion was for death claims, R343 million for disability, R441 million for illness and physical impairment and R8 million for retrenchment. In the last five years Old Mutual’s policies paid out R19billion.
He says it is important for South Africans to understand why these staggering amounts in claims were paid. “When most people consider the need for risk cover, they often don’t think about all the possible reasons for illness, disability or death. As a result, many tend to adopt the attitude that it won’t happen to them. However, our claims statistics show just how many things can, and do, go wrong.”
He says that when it comes to death claims, while many were as a result of obvious causes such as cardiovascular disorders, cancers and tumours, and accidental and natural death, a significant percentage also stemmed from more unexpected reasons such as digestive, blood, urinary system, soft tissue, nervous system and respiratory system disorders.
The accidental death claims show that although motor vehicle accidents, crime and violence were the most prevalent causes of these claims, a number of people also suffered from accidental shootings, drownings, poisonings and burns.
Reasons for disability claims were as a result of people suffering from a wide range of disorders including nervous system, musculoskeletal, digestive, psychiatric, ear nose and throat, visual and urinary and respiratory system disorders.
The so-called big four severe illnesses accounted for 83% of pay-outs of illness claims received: cancer was the largest proportion of these at 60%, heart attacks amountied to 19%, coronary artery bypass graft 11%, and strokes 10%.
The age and gender claims statistics reveal that everyone is vulnerable, with the youngest and oldest disability claimants aged 22 and 64 respectively, while the ages of those for whom death claims were paid ranged from 19 to 92.
In light of these claims statistics, Gouws says that it is critical that policyholders ensure they select a policy that is both comprehensive and tailored to meet their individual needs. “Part of the reason that Old Mutual, through its Greenlight policies, was able to pay out on 95% of all claims received, is that we underwrite thoroughly upfront, so that policyholders’ risks are well understood and covered. We also enable people to tailor their cover as their lives change.”
He says that in this regard, good advice is important when choosing a risk product. “Breadwinners, especially those with dependants, need to know the financial implications of an illness. Cancer, for example, affects one in four South Africans. However, improved diagnosis and treatment has resulted in six out of ten cancer sufferers surviving the disease.
“Ironically, the advances in science that improve our chances of surviving cancer, strokes or a heart attack, carry other costs. Survival often comes at a huge financial cost because of lifestyle adjustment, the unexpected expenses of recovering from an illness and so on. The guidance of a professional financial adviser can make all the difference,” concludes Gouws.
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