Joretha Bothma, Head of Product Development, Underwriting and Claims at Momentum Life Insurance

Health screenings and early detection play a vital role in improving outcomes for serious illnesses. Yet there is another critical aspect that is often overlooked until it is too late: the financial health of your family if you are diagnosed with a serious illness.

A diagnosis such as cancer is life-changing, but it should not be life-shattering. While we cannot always predict our health, we can anticipate the financial impact that a critical illness can have on a household. This year, ‘prevention’ is not just about doctor’s visits – it is about proactively protecting your income and your family's livelihood.

Here are five ways proactive planning through life insurance can empower you to focus on what matters most - recovery.

1. Recognising that ‘rare’ risks are actually routine

Many people overlook critical illness cover because they believe, "it won’t happen to me." However, the reality is very different. According to Momentum Life Insurance’s Claims Statistics 2024, cancer and cardiovascular diseases remain leading causes of critical illness claims, accounting for 61% of critical illness claims for women and 65% for men.

By acknowledging that these illnesses are a predictable part of life’s journey, families can move from a place of fear to a place of empowerment. Having cover in place isn't expecting the worst; it is about being prepared for the risks many households ultimately face.

2. Safeguarding your most valuable asset, your income

For most professionals and business owners, the ability to earn an income is their greatest financial asset. If illness prevents you from working, the impact is immediate and far-reaching.

Income protection benefits ensure that if cancer or another serious illness limits your ability to work, your household expenses can still be met. It helps cover everyday costs such as groceries, school fees, and bond and vehicle payments, allowing you to maintain stability and dignity while recovery takes priority.

3. Critical illness cover: A recovery fund when it matters most

Medical aid is essential, but it typically covers hospital and treatment costs only. It does not account for the many hidden expenses associated with a critical illness, including specialised nutrition, travel to treatment centres, time away from work or sometimes prolonged recovery time periods.

Critical Illness cover provides a lump-sum for treatment, palliative care, or lifestyle adjustments after suffering a defined critical illness, offering families flexibility and choice. In 2024 alone, Momentum paid out R895 million in critical illness claims, enabling thousands of families to access quality care without depleting savings or selling assets.

4. Protecting the next generation

For young and growing families, the financial impact of a serious illness can extend far beyond the immediate crisis. It can affect education plans, long-term goals and generational stability. Life insurance, including income protection, lump sum disability and critical illness benefits form a financial safety net. They help ensure that if a breadwinner faces a health setback, a family’s future plans and aspirations can remain intact. For parents, this peace of mind is one of the most powerful forms of protection they can offer their children.

5. The value of professional financial advice

Planning for unexpected life events can feel overwhelming, but it does not have to be done alone. Research consistently shows that households who seek professional financial advice are financially better prepared and more resilient.

According to the Momentum-UNISA Financial Advice Research Report 2024, families that work with a financial adviser feel more in control of their financial future and are more likely to have appropriate levels of cover in place. An adviser helps bridge the gap between simply having insurance and being adequately protected.

Build a safety net before you need it

Now is the time to review your financial plan. Is your family protected? Is your income secure if the unexpected happens?

Proactive financial planning is a form of self-care. It allows individuals and families to face a health crisis with confidence, knowing their home is secure, their bills are covered and their loved ones are protected. The best time to build a financial safety net is before it is needed.

Speak to a financial adviser to review your life insurance, disability, income protection and critical illness cover, and ensure your family is financially prepared for whatever the future may hold.

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