Following the COVID-19 lockdowns, the 2021 looting, KwaZulu Natal (KZN) floods and now, rising inflation and interest rates – the past two years have been rather challenging. The loss of jobs, businesses, homes and loved ones has meant that people have been pressured from all sides to ensure that they can continue meeting their daily and monthly financial needs.
All of these factors have also led to higher insurance claims, both for short-term and life insurance.
BrightRock, as a single long-term insurer, for example, experienced a 137% increase in the value of death claims paid out for group risk and individual life policies, compared to 2020; an increase of 110% in the number of group risk death claims; and a total cumulative pay out of more than R4.1 billion in claims to the end of May 2022.
Rising value of life insurance
For many members who have Group Risk cover through their employer, this is the only cover that they have. Those who managed to remain employed over the last two years had the comfort of knowing that if their health took a turn for the worst, or they got injured, their family would be financially taken care of.
According to ReMark’s 2021 Global Consumer Study, 56% of South Africans surveyed have a more positive view of life insurance as a result of the COVID-19 pandemic. This means that more people understand the importance of getting life insurance, keeping life insurance and that a pay out can change a loved one’s life.
Below are some interesting claims paid out for Group Risk cover.
Recurring permanent disability claim
A member of a scheme – a 58-year-old woman – started experiencing symptoms of dementia. The scheme has both Temporary Expense Needs and Permanent Expense Needs cover. She was paid under Temporary Expense Needs, after the three-month waiting period, for five months while she was booked off sick. At the end of those five months, she failed a job fitness test permanently, as a result of her cognitive impairment.
Understanding that the nature of her job was admin-related, meant that she was never going to be able to work again. She’ll continue to receive her recurring payouts and won’t ever have to prove her disability to us again. This is because her insurer will never reassess a permanent expense needs claim, giving her, and her family relative financial peace as they deal with a difficult situation.
Temporary disability benefit
Another member – a 27-year-old female – ruptured her anterior and median cruciate ligaments (ACL and MCL) and tore the meniscus of her knee, while performing some of her work duties. Even though she was a part-time employee, she was covered under the scheme and her insurer was able to pay her for two months, after her one-month waiting period had passed. This payout was based on the fact
that her doctor had booked her off sick for three months.
Trauma IQ payout
At the beginning of 2022, a member was riding his motorbike over a weekend, when he skidded over the road. The worst of his injuries was a badly broken arm. He needed surgery and had to remain in the hospital for some time until he could be operated on. After the surgery, the occupational therapist was happy for him to continue with rehabilitation by doing some exercises at home. His insurer was able to pay him 1% for this traumatic claim. This member’s scheme also didn’t have Additional Expense Needs cover, but because it’s automatically included in Death cover as well, he received a claim payment.
These, and many more group risk claim payments have helped members and their families over the last few years. From small claim payments to permanent disability claim payments that will be paid for the rest of what would have been that member’s working life, Group Risk cover gives peace of mind, especially when that cover has been matched to members’ needs.
This article was originally published on page 92 in the FAnews August 2022 Edition and is attributed to Isaac Mudau, BrightRock Chief Operating Officer: Funeral and Group Risk. Click here to read the original version.
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