Dr Hardy Ncube, Head of Personal Products at Standard Insurance Limited

With more young adults making bold financial decisions – buying homes, financing cars, and stepping into ownership – insurance must become a priority conversation for this age group.

Standard Bank recently released their youth barometer which reveals that 40% of all new home loan enquiries between January 2023 and April 2025 came from clients under 35, signalling a shift toward younger first-time homebuyers. Similarly, 37.7% of the bank’s vehicle finance customers fall within the 18 to 35 age group, demonstrating a strong demand for mobility and independence.

Yet, while these financial strides are commendable, the report shows that many young South Africans are stretching their budgets to afford these assets. The bank’s vehicle ownership data revealed that this age group has an instalment-to-income (ITI) ratio of 16.7%, significantly higher than the 11.4% average for customers over 35. This financial strain makes it even more crucial for young people to protect their assets through insurance – seeing them as the first step in their wealth-building journey.

Head of Personal Products at Standard Insurance Limited, Dr Hardy Ncube says short-term insurance should be the first line of defence against financial setbacks emanating from loss or damage to financed assets for young homeowners and vehicle owners.

“Whether it’s home insurance to safeguard property investments or comprehensive vehicle insurance to prevent financial devastation after an accident, insurance ensures that young South Africans can continue building their financial futures without unnecessary disruptions,” says Dr Ncube.

While short-term insurance protects physical assets, long-term insurance, such as life and disability cover, ensures financial security in the face of unexpected health challenges.

According to Liberty’s 2024 Claim Statistics, dread disease cases among young people are increasing, with conditions like cancer, heart disease, and strokes affecting more individuals at earlier ages. However, while medical advancements mean more people are surviving these illnesses, many find themselves unable to work for extended periods, or permanently, due to the lasting effects of their condition.

Head of Lifestyle Protector at Liberty, Kresantha Pillay says this reality makes long-term insurance more essential than ever.

“Disability cover and income protection insurance ensure that those who survive life-altering diseases can still maintain financial stability and protect their assets without depleting their savings or relying on debt,” Pillay explains, “For young homeowners and car owners, these policies preserve wealth-building foundations, preventing financial setbacks that could derail their long-term financial goals.”

In an age where survival rates are increasing but the ability to earn remains uncertain post-illness, insurance is about safeguarding financial independence. It should not be seen as an expense but as a strategic financial tool that protects wealth-building assets. Whether it’s home, vehicle, health, or life insurance, insurance ensures that young South Africans can preserve their financial futures and avoid setbacks that could derail their long-term goals.

As the youth reshape South Africa’s financial landscape, it’s time to rethink insurance - not as a burden, but as a critical component of financial security. Protecting assets today ensures a stronger, more resilient financial future tomorrow.

Your first assets are more than milestones – they’re the foundation of your future. Speak to a Financial Adviser or broker who understands your journey and can help you protect what matters most, right from the start.