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Protecting financial dreams: Momentum Life Insurance’s 2023 claim statistics

14 June 2024 Momentum Life Insurance

Momentum Retail Life Insurance has released its 2023 claim statistics, revealing that a total of R6,5 billion in claims was paid out, which represents a 5,5% increase in total payouts from 2022.

‘The death claim statistics for 2023 reflect a year free from extraordinary events such as pandemics or natural disasters. Our 2023 claims were more aligned with expectations, and we saw more deaths at older ages, due to natural causes,’ says Joretha Bothma, Head of Product Development, Underwriting and Claims, at Momentum Life Insurance. ‘Although the overall claim payments were more aligned with our underlying expectations, the unpredictability of life and the essential role of adequate life insurance cover in safeguarding against life’s uncertainties should not be underestimated. The statistics emphasise the importance of age- and sex-related (male/female) health screening, which provides life-saving early detection for many illnesses d reiterates that improved lifestyle choices can mitigate many living benefit claims.’

Mortality claims: Cancer and cardiovascular top the list
Cardiovascular conditions and cancer were responsible for more than half of death claims (57%) in 2023 and were the top two causes of death for both sexes. Unnatural deaths, respiratory conditions and nervous system conditions made up the balance of the top five causes of death.

There were just over twice as many male death claims than for females and, as expected, more than 60% of deaths occurred after age 60. An interesting observation is that females have a higher proportion of deaths caused by cancer (31% versus 24%), and a far lower proportion of unnatural deaths than for males (6% versus 17%). Motor vehicle accidents were the leading cause of unnatural deaths. As expected, most of the death claims for younger lives (65% for lives younger than 30) related to unnatural causes.

Altogether 91% of terminal illness death claims were admitted due to cancer, reflecting the devastating impact of undiagnosed cancers that lead to end-stage cancer claims.

2023 also saw the payment of Momentum’s largest-ever death claim of R117,2 million for a business owner who died from an accidental gunshot wound. The payout, spanning eight business assurance policies, underscores the value of sound financial advice and well-structured business assurance policies, which help businesses continue functioning and protect jobs even when tragedy strikes.

Critical illness cover is essential
Cancer, cardiovascular and musculoskeletal conditions were the top three causes of critical illness claims, while musculoskeletal conditions, cancer and nervous system conditions were the top three causes for lump sum disability and income protection claims.

Bothma says that it is troubling that more than 80% of the clients who tragically passed away due to a critical illness in 2023 did not have critical illness cover with Momentum. ‘This highlights two concerning potential gaps: Our clients may be underserviced in living benefits, such as critical illness and disability cover, and even those who have cover often do not have sufficient protection in place.

As our stats show, having sufficient critical illness cover is not just a recommendation, but a necessity. The inevitability of critical illnesses, regardless of sex or age, underscores the importance of comprehensive insurance cover. This is vividly illustrated by the recent cancer diagnoses of King Charles and Princess Kate, emphasising that critical illness does not discriminate. Regular sex- and age-appropriate health screening (mammograms, pap smears, prostate exams, colonoscopies, etc) is crucial, but so is ensuring that individuals have comprehensive insurance policies to protect against the financial burdens of such illnesses,’ she says.

Sound claim payment record protects clients’ lives, businesses, and dependants
Momentum Life Insurance is at the forefront of providing life insurance cover and continues to demonstrate its strong commitment to clients. Since the inception of Myriad, its flagship insurance product, Momentum has insured over 770 000 lives and paid out a cumulative total of about R71,3 billion in claims.

Bothma says that Momentum prides itself on its solid reputation for claim payouts. ‘Momentum Life Insurance is as committed to upholding its reputation for reliable claim payouts as to ensuring that valid claims are honoured. This commitment, coupled with the comprehensive benefits offered by Momentum Life Insurance, outstanding underwriting and strong claim management processes and principles, ensures that our clients can rest assured that they will have much-needed financial support in times of distress.’

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