Why insurance should be part of your wealth strategy

For decades, insurance has functioned as a financial safety net, a cost justified by the trust that it will protect you or your family when you need it, and a hope that you’ll never have to use it.

But in a world where consumers are demanding more transparency, flexibility and long-term value from their financial relationships, that model is being challenged.

Today, insurance is starting to be seen as more than just protection – it’s becoming part of a broader financial planning strategy.

This evolution is rooted in a simple idea: people want their money to do something. They want to feel that their monthly premiums aren't disappearing into a black hole but rather contributing toward a financial future that feels more certain, even joyful.

glu’s ProfitBack™ is one way insurance is starting to shift from a grudge purchase to something that quietly builds value over time. It’s not a loyalty programme, and it’s not a gimmick. It’s a built-in benefit that shares the business’s success with the people who keep it going: its members.

ProfitBack™ is built on glu’s mutuality model, a structure rooted in its affiliation with PPS and is designed to benefit even more South Africans by extending the advantage of shared value to a broader community. It invites more South Africans into a system where value is shared; where premiums don’t just protect against loss but help build something of value over time.

At glu, mutuality means that when the business performs well, instead of profits going to external shareholders, it is shared with the people who make the success possible - the members.

If you’re under 60 and take out life, disability, critical illness or income protection cover, you automatically qualify to start receiving ProfitBack™ allocations. And the best part? Submitting a claim doesn’t reduce your allocations or affect your ProfitBack™ balance. Members don’t have to sign up separately, a ProfitBack™ policy is automatically opened when joining glu. It’s like having a financial bestie that’s always looking out for you.

Here’s the gist. Each year in April, glu allocates a notional bonus to members’ ProfitBack™ policies. That bonus starts to vest - which just means parts of it become available to you - once you’ve been a member for 10 years. At that point, 20% becomes available to you. Then, every five years after that, another 20% becomes yours. When you have been a member for 25 years, or you turn 65 (whichever happens first), the full amount is accessible.

What you do with it is up to you: withdraw it, reinvest it, or keep it as a little nest egg for later. It’s a long-game benefit, and one that shifts how you think about insurance. It’s no longer just about “what if something happens.” It’s also about “what do I have to show for being prepared?”

As glu Chief Executive, Michele Jennings puts it, “Insurance should be about more than bracing for the worst. It should also help people plan, dream, and participate in the upside.”

In many ways, ProfitBack™ isn’t just a product - it’s a signal. A signal that the industry can evolve, that financial services can be transparent and human, and that insurance can become part of a more empowering financial journey.

It’s one example of how rethinking long-standing models can unlock value not just for companies, but for the people they exist to serve.