Jay Malatji, Provincial General Manager at Metropolitan

The recent hikes in electricity tariffs as well as rising petrol and diesel prices have placed South African consumers under even more financial strain. This has been exacerbated by the recent Quarterly Labour Force Survey released by Statistics South Africa that reported that the first quarter of 2026 saw more than 300,000 jobs shed from the economy and the official unemployment rate now sits at 32,7%.

This means that consumers are looking for ways to ease their financial strain by making savings in their household budgets. A common area where consumers believe they can afford to cut is risk and protection products. This has already been an established trend based on data from the Association for Savings and Investment South Africa (ASISA) released in March 2026. According to the latest ASISA industry statistics, risk policy lapses had begun rising again after declining for three consecutive years, with 8.7 million policies lapsing in 2025, up from 8.2 million in 2024.

However, Provincial General Manager at Metropolitan Jay Malatji has cautioned consumers against allowing policies to lapse as this could leave them financially exposed and vulnerable at a time when they might need the product.

“We do understand why people make this call because when money is tight, it is natural to cut what feels least urgent in that moment,” said Malatji. “Risk and protection products are usually for the future and when consumers are under financial burden they tend to focus on the relief provided here and now.”

The consequences of that decision, however, can be far-reaching, especially if consumers don't understand the detail, which can leave them unprotected.

“What many policyholders don’t realise is that letting a policy lapse is not the same as pressing pause. If a policy lapses and a new one is taken out, a fresh waiting period can apply,” said Malatji.

Malatji provided some tips on what consumers can do before shopping around for cheaper policy options or walking away from their insurance partner altogether.

• Malatji suggested that consumers always speak to their insurer first before doing anything. Most policyholders don’t know that insurers would rather work with you than lose you. A phone call could reveal options you didn’t know existed, including reduced premium arrangements or payment deferrals during periods of financial difficulty. “A small detail that consumers don’t always consider is that our country’s Policyholder Protection Rules do offer some relief and that if a funeral policy is reinstated by the same insurer, a new waiting period cannot be imposed. But if you move to a new insurer, you could find yourself starting from scratch and unprotected for months,” he said.
• It is important to review your cover amount rather than cancelling entirely, Malatji said. If your current premium is too high, reducing your cover amount may bring it to a manageable level. “This means that you can keep the policy, the waiting period history, and the protection, just at a lower sum assured. This is something Metropolitan, for instance, can assist with when it comes to funeral products,” he said.
• Some insurers, including Metropolitan, offer a premium skip facility that allows policyholders to pause a payment for a month without the policy lapsing.  Said Malatji: “It is designed precisely for moments like this one. So, check whether your policy includes this feature before assuming cancellation is your only option.”
• Another option, according to Malatji, is to explore a paid-up option. “If your premiums have become genuinely unaffordable, some policies can be converted to a paid-up status. This means you stop paying but retain a reduced level of cover. This is not available on all products, but it is worth asking about because a reduced benefit is significantly better than no benefit at all.”

The options to reduce, pause, or restructure a policy exist precisely for moments of financial difficulty and before consumers walk away they should explore their options otherwise it could prove far costlier than the premium itself.