By Glenn Hickling, BrightRock Head of Legal

Life insurance seems simple enough … until you need to make real decisions about your risks, health, and financial future. With rising costs, growing health risks, and widespread financial stress, knowing what you’re covered for (and what you’re not) matters more than ever.

Recent findings from the Association for Savings and Investment South Africa (ASISA) highlight the urgency: the life insurance protection gap has reached R50,4 trillion, with 85% of working South Africans having no critical illness cover whatsoever. So why does this gap exist and what can you do to avoid being part of it?

1. Your good health is your biggest asset (use it while you have it)

When you feel healthy, insurance can feel like a “later” problem. But that’s precisely when cover is most affordable and easiest to get. Illnesses like heart disease, diabetes, and cancer often develop quietly as we age. Being young and healthy gives you access to better premiums and more options. Once a health issue appears, cover can become far more expensive or unavailable altogether.

If you’re healthy today, that’s the best time to secure solid cover.

2. Waiting costs you more than you think

Many people delay getting cover until they earn more or feel ready. But age and health are the two biggest drivers of life insurance pricing, and both change every year.

A five‑year delay can dramatically increase your lifetime premiums. A healthy 30‑year‑old pays significantly less than a healthy 35‑year‑old for the same cover. And the longer you wait, the higher the chances of developing a condition that pushes up premiums or results in exclusions.

3. Make sure you understand how claims work

Most policyholders think: “If something happens, the insurer will pay.” But a claim only pays out if the event meets the exact wording of your policy. While insurers are committed to paying legitimate claims, a pay-out depends entirely on whether the event meets the criteria detailed in your policy.  Critical illness cover, for example, may require a specific diagnosis or a certain stage of an illness. Waiting periods and exclusions also matter. When people don’t fully understand their policies, nasty surprises often emerge at the worst possible moment.

4. Full disclosure isn’t optional

Many claim disputes in South Africa stem from non‑disclosure, which is sometimes accidental, sometimes intentional. Whether it’s a past medical test, family history, occasional smoking, or another insurance application, leaving out details can jeopardise a future claim.

Insurers expect full, accurate information because it affects pricing and risk assessment. If information is missing or inaccurate, the entire system can be affected. You might be concerned that disclosing everything will increase your premiums. However, the risk of holding back information is far greater. If a claim arises and it's found that you didn’t disclose something important, you or your family could be left without the financial protection you had intended.

5. Make insurance decisions before life forces your hand

Insurance doesn’t feel urgent when life is going smoothly. But once something goes wrong, getting cover becomes harder and much more expensive. The smartest decisions happen long before the risk becomes real.

Before signing or renewing a policy, always check that you understand definitions, exclusions, waiting periods, premium increases, and disclosure requirements. Ask your adviser to explain claim scenarios in plain language. And stress‑test your cover based on tough, realistic situations – not best‑case assumptions.