Why Is Trust So Important?

LIFE COVER: FRAUDULENT CLAIMS COST INSURERS SIGNIFICANT AMOUNTS OF MONEY - EXPERT

- Craig Baker

Trust is very important in life insurance and underpins it from premiums to payouts. You must be able to trust that your life insurance will be paid out as agreed, but the life insurer must also be able to trust you and the information you provide.

In unpredictable times, South African families want to know that their financial future is secure and this is why millions take out life and funeral cover to provide comprehensive protection for their loved ones when they need it most, says Mpho Mofubetsoana, risk and compliance administrator at MiWayLife.

A life policy can, for example, provide peace of mind if the breadwinner dies.

Mofubetsoana says depending on the terms and conditions of the policy, a lump sum payout can potentially cover funeral costs, wipe out debt and ensure you have basics available, such as groceries and school fees.

He points out that most insurance claims are paid without a hitch, although a few cases make the headlines when clients feel they were treated unfairly. While occasional cases are disputed, the vast majority of claims are paid without hassles, Mofubetsoana says.

Consumers always think that insurers are reluctant to pay out claims, but Mofubetsoana says nothing could be further from the truth.

"Over the past three years, 75% of direct life insurers paid out on claims and MiWayLife is on a par with industry standards in this regard. We have a strong commitment to honour claims and supporting our clients," says Craig Baker, CEO of MiWayLife.

According to the Association for Savings and Investment South Africa (ASISA), the industry paid out claims and benefits totalling R298 billion between December 2023 and June 2024, an increase from the R287 billion paid out in the same period the previous year.