Jaco Gouws, risk actuarial manager at Old Mutual, told CNBC Africa that while there are numerous policies available, what is most important is deciding one’s own individual needs.
Disability cover, for example, is aimed at protecting an individual’s work, lifestyle and easing financial burdens one might face in the event of a disability.
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“It is important to get disability cover as soon as possible so as to get peace of mind in case a tragic event takes place. As you get older, people come into your life as a husband or a wife who might also need to be protected through disability cover,” noted Gouws.
“Earnings protection or disability cover is often neglected. This kind of cover is not only for the member’s family but for the member as well.”
Where life cover is concerned, Gouws noted that there was a misconception of what life cover was, as most people only associated the policy with death.
“People think life cover is death cover, so they take the policy to get assistance in case of their loved ones passing on,” said Gouws.
He noted that another option of cover was the critical illness insurance policy, which was meant to help an insurance holder recover from terminal illnesses such as cancer and other big diseases.