As South Africans look toward 2026, one crucial financial check often slips through the cracks: reviewing your life insurance policy. Just as you take time each year to review your medical aid or update your budget, your life insurance policy deserves the same attention. Many people buy cover early in life and then forget about it, assuming it will automatically evolve with them. But in a world of rising living costs and shifting family responsibilities, your old policy might not offer the protection you think it does.
To ensure your family’s financial security is perfectly aligned with your life today, here are some critical considerations to think through and discuss with your insurance provider or financial adviser:
Your policy type might be stuck in the past
When was the last time you checked what kind of policy you actually have? Many South Africans still hold on to term life cover they took out a decade ago, often just to cover a bond or school fees. But life changes. You may now need whole-life protection that secures your family beyond short-term debt. As careers evolve and retirement ages shift, the “right” cover five years ago may no longer serve your financial reality today.
Life happens but has your policy kept up?
Marriage, buying a home, welcoming a child – each milestone reshapes your financial picture. Yet many people never update their cover to reflect these shifts. With South Africans now marrying later, 32 for men and 29 for women, and home ownership delayed by affordability pressures, family protection needs evolve more slowly but remain just as critical. Treat your life insurance as a living product; it should grow and adjust with you.
Are you paying too much … or not enough?
South Africans’ household debt-to-income ratio sits stubbornly around 62%, meaning many are still financially stretched. Yet, in tough times, life insurance is often the first expense people cut or worse, overpay for without realising. A recalibration can uncover gaps or excess. If you’ve paid off a car loan or your salary has grown, you might be able to redirect funds to more meaningful protection.
Are your beneficiaries updated?
It sounds like a small administrative detail, but beneficiary errors are one of the most common reasons for delayed or disputed payouts in South Africa. Imagine your policy still lists your ex-partner, or your child’s name is misspelt, your loved ones could face months of legal battles just to access funds meant for them. Check your beneficiary list regularly. It’s the easiest way to ensure your money goes exactly where you want it to.
Your health journey could save you thousands
Quit smoking? Lost weight? Started running marathons? You might qualify for a lower premium, but most people never tell their insurer. With South Africans now living longer, with an average life expectancy of 66.5 years, lifestyle updates can make a measurable difference.
The longer you wait, the greater the risk
Every year you ignore your life cover, the gap between your needs and your policy widens. South Africa’s 14.3 million income earners currently have just 45% of the life and disability cover their households actually require, a staggering shortfall that could cripple families in crisis.
This article is attributed to Chief Financial Officer at BrightRock, Izak van der Westhuizen. It was originally published by I Am Woman and is written by Lerato Ramuhashi. You can read the original article here.