4 Things people like you claim for – make sure you’re covered against them, too

Last updated on 22nd June, 2021 at 09:46 am

Think you’re completely covered for all of life’s curveballs? Think again. A risk cover expert shares some of the most common causes of claims made by Sanlam clients, to help you make informed decisions about your cover.

Cover claim #1: Heart issues

“We see that 25% of claims for death are due to heart issues,” shares Karun Varughese, an actuary at Sanlam Personal Finance. With cardiovascular disease credited as the leading cause of death in South Africa after HIV/Aids, according to The Heart and Stroke Foundation South Africa, it’s no wonder cover for this risk is vital.

Cancer, respiratory diseases and ‘non-natural deaths’ (caused by factors including accidents, poisoning or violence) are major causes of claims for death too. But is life cover for everyone? It does have a purpose for most people, but Varughese explains, “Life cover is most useful for people who have family who are largely dependent on them.”

Even if you have savings, these can only last so long before your dependants run out of money to cover their basic needs – and that’s before your own financial obligations are honoured. To learn more about the factors to consider when looking at your own life cover, read this.

“Death comes with a big financial impact,” cautions Varughese. “Firstly, you will no longer be around to provide for all the financial needs of your family. Secondly, all your debts (such as mortgages, car finance or credit cards) need to be settled, so that your loved ones don’t become responsible for these debts.”

Separate to family obligations, life cover is also suitable for people with large estates who will become liable for estate duty if they pass away. “Having sufficient life cover will ensure that there will be enough money to settle expenses such as estate duty, executor fees and tax payments that are due,” explains Varughese. Here are some other unconventional uses for life cover.

Remember, as a Reality Plus or Health member, you can get up to 30% off risk products, including life cover.

Cover claim #2: Inability to work from an illness like cancer

Cancer is the biggest cause of lump sum disability claims, according to Varughese, and with 115 000 people diagnosed in South Africa every year according to the SA National Cancer Registry, cover should be a serious consideration when assessing your financial needs. “Topping up your cancer cover with something like Sanlam’s Cancer Benefit is becoming more and more relevant,” suggests Varughese.

Other conditions Sanlam commonly receives disability claims for include:
• Diseases of the sensory organs and nervous system
• Cardiovascular diseases
• Bone, back or joint issues
• Mental disorders

Many of these conditions arise in a person irrespective of age, which is why Varughese suggests that everyone who is working and earning an income should have some level of disability protection. This is true for every working person, regardless of whether or not they have a job that poses an obvious daily risk to their health or wellbeing.

“Young working people often believe that they are invincible, but they especially need disability cover,” he comments. “The financial impact of becoming disabled is highest when you are young, as you will need to support yourself without ever being able to work again in your life. Read more to understand your disability cover here.

Varughese cites his own cover needs as an example: “If a 30-year-old, like myself, were to become disabled, they’d need to be able to make up for all the income that they would have earned until retirement at age 65. This generally means that a 30-year-old should have disability cover for 35 years’ worth of income from their employment.”

As a Reality Plus or Reality Health member, get up to 30% off risk products such as disability cover. Learn more about this benefit here.

Cover claim #3: Life adjustments for cancer

Cancer diagnoses in South Africa were predicted to increase by 78% by 2030, according to 2013 research published in The Lancet Oncology, and Sanlam’s severe illness claims support this statistic. “Cancer dominates, and is the reason for 61% of severe illness claims at Sanlam,” shares Varughese. “This shows how useful proper severe illness cover can be, as the payout can go a far way to helping you adjust your lifestyle to deal with diseases such as cancer,” he adds. It can cover the cost of employing a carer, and treatment that isn’t covered by medical aid or gap cover.

Make a point of having regular health checks to empower yourself on your journey to maintaining wellbeing. Such screening visits are often the first step in early detection of treatable conditions. Reality Core, Plus and Health members earn 10 000 tier points when they complete a basic medical test at any Dis-Chem or Clicks pharmacy. Find out more here.

Cover claim #4: Short-term inability to work due to illness or injury

If you’re a professional who earns their income by providing private services, this short-term income protection is worth consideration. “This is especially useful for professionals who only earn an income when they work and do not get paid sick leave,” explains Varughese. “As a result, Sanlam’s Sickness Benefit is useful, as it ensures you don’t miss out on income if you have a sickness that keeps you off work for longer than a week.” He notes an important distinction: a Sickness Benefit pays out for temporary conditions as well as permanent ones, unlike traditional disability products, which would only cover permanent disability. Read this to find out more about this and other forms of income protection.

So, what exactly can you claim for under this cover? “Non-natural causes are the main reasons for claims,” says Varughese. But they’re not limited to these. “Bones, back or joint issues and diseases of the respiratory system come in next. The next two most common causes for sickness benefit claims are digestive system issues, followed by complications caused by pregnancy.”

Savings can help soften the impact of being out of work due to unforeseen circumstances. Use this savings calculator to work out how much you need to put away each month to reach your goal.

How to manage your risk

Treating your body and mind with care is a fundamental step in lowering your risk of a diagnosis for many of the conditions discussed here. “Eat healthily, exercise, sleep sufficiently and get regular health check-ups,” suggests Varughese.

An overwhelming share of claims are attributed to cancer and heart-related diseases, which suggests that genes and lifestyle play a significant role in your risk of developing either of these conditions. For this reason, regular check-ups are essential for early detection of cancerous or pre-cancer cells and hypertension. Knowledge is key to understanding your risk: read this for information for both women and men on doing breast cancer self-checks, and this to get clued up on the health risks posed to men.

Many people in formal employment have some life and disability cover that is provided for by their employer, says Varughese. Don’t be shy to ask your payroll administrator whether group risk cover is one of your company benefits, and what exactly this cover includes.

Short-term insurance

Hazel Pretorius, a Sanlam specialist in short-term personal and commercial cover at Sasolburg BlueStar, sheds light on the most common short-term claims she sees, and how to manage these risks.

#1: Damage to electronic equipment due to lightning
Cover: building insurance
Manage your risk: “Unplug as much electronic equipment in your house as possible when a storm is approaching,” suggests Pretorius. “Merely switching it off at the plug is not enough to stop the surge from damaging your goods. Installing a surge arrestor may also limit the damage to fixed equipment that can’t be unplugged.”

Use this building value calculator to ensure your property cover matches its true replacement value.

#2: Single vehicle accidents
Cover: car insurance
Manage your risk: “Most single vehicle accidents are caused while people are in a rush,” says Pretorius. “Clear all your blind spots before you start driving and be present in the moment. Most of the time the hassle of getting your vehicle repaired doesn’t justify the reason you were in a rush.”
Make a habit of doing an annual assessment of the retail value of your car to avoid over-insuring it.

Use this calculator to calculate the retail value.

#3: Accidental damage to electronic devices or medical equipment
Cover: all risk insurance
Manage your risk: “Damage to electronic devices is most often caused by dropping the device (e.g. a cell phone) or spilling liquid on it,” shares Pretorius. “The appropriate screen protector and cell phone cover can reduce the risk of damage by impact or water.”

This home contents calculator will help you determine the correct value of your home’s contents, so you can get adequate cover should accidents happen.