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The reality of income risk in a changing world of work

South Africa’s changing world of work is exposing millions to income risk. As traditional employment declines, financial advisers must rethink income protection strategies to better serve SMMEs and gig workers with tailored solutions that reflect how they earn and sustain livelihoods.
Written by
Nic Smit
Published on
April 23, 2026
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When it comes to life insurance, the evolving landscape of work in South Africa leaves a significant number of South Africans either uninsured or over-exposed. With nearly 2.7 million SMMEs1 contributing to a third of the GDP and a gig economy supporting 2.4 million people2, the traditional "employer safety net" is becoming less common.  

For these clients, their income is linked to their physical ability to work; without structured sick leave, even a short interruption can threaten their financial stability.  

Bidvest Life’s 2024 Claims Report3 reinforces this insight. Business owners and fitness professionals were the top claiming occupations under Comprehensive and Event Based Cover (respectively).  

Despite this, many of these people remain uninsured. The primary reason for this is a mismatch between traditional insurance products and the realities of how these clients work. Traditional life insurance models may decline cover or apply exclusions for those with fluctuating incomes or high-risk occupations. This creates a paradox where individuals may find it difficult to protect themselves against common health issues - like cancer or minor infections - simply because their primary job is deemed high-risk.  

By understanding these clients’ reality, as a financial adviser, you can add real value.

Insuring the business owner - Bidvest Life’s Event Based Cover is designed to help bridge the gaps in your client’s cover, as result of their occupation, and serves as a practical alternative by paying out based on specific medical events rather than traditional occupational disability definitions. Event Based Cover provides an opportunity for many people who would otherwise not qualify for traditional income protection to still have cover in place.

The benefit to the client is significant. Declining income protection to certain individuals based on their occupation means that they may find it difficult to get cover to protect themselves against injuries or illnesses that are entirely unrelated to their occupations. Event Based Cover offers protection against cancer, minor infections, heart attacks, hysterectomies, hernias, and more, none of which are typically occupation-based risks.  

The way people work has changed, but the need to protect their income has never been more critical.

Nic Smit
Product and Pricing Executive at Bidvest Life

A recent Bidvest Life claim illustrates this: Tim*, an oil rig worker, typically excluded from income protection due to occupational risk, was insured through Bidvest Life’s Event Based Cover. While at home in South Africa, he was involved in a motorcycle accident and suffered multiple injuries, including a spinal fracture. Bidvest Life approved his claim, paying 75 days of his cover amount as a result of the incident and injuries incurred.

This event  triggered a Fast-Track Event claim, an innovation Bidvest Life introduced to reduce claims processing time for a predefined list of common claims events. In 2024, 65% of income protection claims started as Fast-Track Events3. The top Fast-Track Event procedure was hysterectomies, which is especially important considering that 37.7% of SMMEs in South Africa are female-owned4.

Insuring the business - For a salaried employee, a few weeks off work may be manageable. For a small business owner, it can place significant strain on the survival of the enterprise. Salaries, rent, and supplier payments always continue, regardless of whether the owner is generating income or not.

Bidvest Life’s Business Overhead Protection is designed to protect against these costs. Paying out under the same criteria as personal income protection, it provides a monthly payout intended to cover these expenses while the owner recovers. Importantly, it does not require proof that a client’s income has reduced during the claim period, which simplifies the process and reduces the administrative burden of their claim.

The key takeaway is simple: the nature of work may have evolved, but the need for income protection has not. It’s time we reconsider how best to structure income protection for those clients who may not fit the ‘traditional’ bill.  

In today’s working world, this is both a responsibility and an opportunity for you as financial  advisers. By understanding how your clients earn their income, and by using solutions designed for non-traditional work structures, you can ensure that more clients, and their small businesses, are appropriately covered when illness or injury strikes.  

1 Small business growth

2 Gig economy in SA

3 Bidvest Life 2024 Claims Report

4 State of SMMEs in SA

* Pseudonym used to protect the policyholder’s identity

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