South Africa Today – Feature
Author: Melody Stander, Training Specialist
As the nature of work evolves, so too must the life insurance products that protect those earning a monthly income.
The number of previously uninsurable workers in the local gig economy is multiplying. A pre-Covid study shows that this represented at least 1% of South Africa’s workforce and the same study pegs the annual growth of the local gig economy at 10%, leaving those in non-traditional occupations without a financial safety net. Why shouldn’t life insurance be accessible for those progressing in new-age careers like influencers and online fitness instructors, for example?
Bidvest Life’s Event Based Cover provides cover to many of the occupations that would otherwise not qualify for income protection. This includes individuals with a high risk of being injured while working, like oil rig workers, individuals whose risk of being unable to earn due to even a minor injury is high, like a guitarist who could be deemed unable to work for a long time due to a finger injury, and individuals who aren’t employed in a traditional structure, for example, someone whose income fluctuates monthly based on the number of hours they work each month. Non-income earners like students and homemakers can also protect themselves with Event Based Cover.
Melody Cloete, Training Specialist at Bidvest Life, says that declining income protection to certain individuals based on their occupation means that they are not able to protect themselves against injuries or illnesses that are entirely unrelated to their occupations. “Event Based Cover offers income protection in the event of cancer, minor infections, heart attacks, hysterectomies, hernias, and more, none of which are occupation-based risks.”
Take Mr Meyer*, a 31-year-old professional yachtsman and Bidvest Life policyholder. In February 2023, Mr Meyer was diagnosed with stage 1 testicular cancer and underwent a radical orchidectomy. By June 2023, the cancer had spread to his lungs. Despite the nature of his occupation, which was previously uninsurable, Mr Meyer’s Event Based Cover ensures that he will continue receiving monthly income payments until February 2025, enabling him to focus on his recovery without worrying about earning an income.
“This is why income protection should be the number one priority for every working South African. At Bidvest Life, we believe that all South Africans should be able to protect their income against their greatest risks, irrespective of their occupation,” says Cloete. “By understanding their clients’ occupations and the unique insurance products available for people in non-traditional careers, financial advisers can ensure that all clients have the right cover in place to protect their income.”
*Pseudonym used to protect the policyholder’s privacy
