As the new year begins, South Africans are encouraged to prioritise one of the most important, yet often overlooked, aspects of financial well-being: ensuring their insurance cover is sufficient for their current life stage.
Despite widespread awareness of insurance, South Africans remain significantly underinsured. Recent data points to a substantial protection gap across life, disability and asset cover, leaving many households financially vulnerable to unexpected shocks. This reality underscores the importance not only of having insurance in place, but of regularly reviewing existing cover to ensure it meaningfully reflects changing needs, responsibilities and financial exposure.
Personal circumstances can change in a moment, and in an ever-evolving world, an annual insurance check-in is a practical way to stay financially aligned. Whether navigating new responsibilities, growing assets, or shifting priorities, reviewing cover helps ensure that you and your loved ones remain protected and able to move forward with confidence.
Small details… big consequences
There are several life events that can signal the need to update insurance cover. Purchasing a home or vehicle, getting married, welcoming a child, starting a business, or experiencing a loss can all significantly change your risk profile and financial responsibilities. Even seemingly small administrative updates, such as reviewing beneficiaries or updating contact details, play a critical role in ensuring policies work as intended when they are needed most. When these changes are overlooked, cover may no longer reflect reality, potentially exposing policyholders to avoidable financial strain.
Inflation further reinforces the need for regular reviews. Rising costs associated with asset replacement, repairs and living expenses mean that cover limits set years ago may no longer be adequate today.
“An annual insurance policy review helps identify potential gaps and ensures you remain familiar with the terms and conditions, so you know exactly what you’re covered for,” says Tando Ngibe, Senior Business Manager at Budget Insurance. “It’s about making sure your cover still reflects the real value of your assets and liabilities, reducing the risk of unpleasant surprises at claims stage.”
Regular check-ins can also uncover opportunities to optimise premiums without compromising protection. Product enhancements and bundling options are often introduced as insurers evolve to meet changing consumer needs.
“It is important to update your household inventory list on a regular basis to ensure that any new items are included and to remove items that that you no longer have, add Ngibe. “If you fail to list the values of your new TV or cell phone for example, you would probably not be insured adequately. Likewise, it doesn’t make sense to be paying to insure your old washing machine when you have just replaced it with a new one with a higher value” adds, Ngibe.
A simple, effective gateway to long-term financial well-being
Insurance plays a vital role not only in managing risk today, but also in supporting long-term financial security. Taking stock of your cover at the start of the year enables more informed decisions, strengthens resilience, and supports continuity for dependants and future generations.
“Life insurance, in particular, forms part of a broader wealth-building conversation,” says Corli Basson, Business Manager: Underwriting at 1Life Insurance. “When structured appropriately, it does more than provide protection, it helps families preserve financial stability, settle obligations, and create a foundation that supports generational security, even in the face of unexpected events.”
Basson encourages policyholders to begin by revisiting their policy terms and recent updates from their insurer, confirming that their cover still aligns with their lifestyle, responsibilities and financial goals. “It’s equally important to reassess coverage limits as assets grow or circumstances change, and to review deductions so there is a realistic balance between affordable premiums and manageable out-of-pocket costs when claiming.”
As the year gets underway, scheduling a proactive insurance check-in with your insurer can make a meaningful difference. By reviewing and adjusting cover early, policyholders can address potential gaps before uncertainty arises, entering the year ahead with greater clarity, confidence and peace of mind.