Take the Fear Out of Life Insurance: Common Concerns and Myths
JOHANNESBURG, South Africa – 17 August 2023 – For all the good it does, the life insurance industry needs to break through the “fearmongering” and put in processes to help consumers along their path to securing the financial freedom of loved ones through life insurance. This is the view of AllLife, which brings life insurance to all South Africans, including those that often get overlooked due to living with dread and chronic diseases, as it sets out to help consumers take the fear out of applying for life insurance.
According to AllLife, the industry needs to help consumers by addressing fears head-on, acknowledging anxieties, and talking openly about the perceptions that stop many South African from taking out life cover.
“Understanding the process of getting life insurance can be terrifying, especially when the person on the other end of a phone asks you personal questions about your weight, health conditions, and family history. We believe every person deserves the right to life insurance and that the decision about what that insurance is lies in your hands, that your privacy is respected, and that being honest will help you get the right cover,” said Steph Bester, CEO at AllLife. “Critically, we want all South Africans to stop settling for cover options because you think you don’t have a choice. You have a choice and options, and you don’t have to go through fearful processes to get there.
“Let’s use AllLife as an example. You can pick up the phone today and get R3m in life cover, no matter your health status, without needing medical tests.”
AllLife says that one of the main reasons consumers are put off life insurance is the confusing financial jargon thrown at them when discussing policy options. By admitting that using words that mean nothing to most South Africans can cause anxiety, the company is urging you to ask what things mean, especially if what is in a document is confusing.
But it is more than documents and words. It is people that AllLife believes make a difference. It is for this reason that the company strives to only work with team members who are willing to help you by walking you through the options, helping you understand what your options are, and guiding you through what information you need to share – all so that they take the fear out of life insurance. We ask our team to deal with anyone they speak to as if they are dealing with a loved one. And to ask themselves, if this was their mom or dad, what would they want them to know and how can they help them understand?
One area AllLife hopes to help South Africans better understand is the need to do mandatory medical tests before qualifying for life insurance, another reason many of us don’t even think of applying for cover. In some cases, AllLife uses what is known in the financial world as “Simplified Underwriting.” Simply, this lets South Africans, who qualify for this option based on their health and personal circumstances, apply for specific levels of life insurance without medical tests.
Another fear? Costs! According to AllLife, you don’t have to buy all the bells and whistles with your policy – so don’t. Ask your advisor to give you all the options, and know you can change your life cover to match your budget. Again, you have choices in this, you can take out the bare minimum Accidental Death Cover and Funeral Cover, or if you become financially stable, you can increase all these later. If you have fallen on hard times – you can drop your premium – you must speak up and ask for help.
“So many South African consumers are also terrified that their claims won’t be paid out and have no idea why they aren’t when it happens,” said Bester. “For us, we want our clients to be able to trust us – so we are very upfront by helping you know precisely why claims won’t be paid. We do this by giving you the information you need to know, for example, helping you understand that unpaid claims might be because you haven’t paid your premium, never shared a specific health condition or didn’t go for a health check you agreed to. Sometimes claims are made during what is known as a waiting period, or you have made an insurance claim for something not in your policy. But there is no reason this should happen if you ask your insurer to be upfront about all these.
“Essentially, we believe that South Africans have for too long lived in fear that they are simply uninsurable. Many are being held hostage by confusing policies and the crippling anxiety that they have no right regarding their life insurance because something in their life or health has changed. It may come as a surprise, but one of the main reasons people are being declined for life cover is due to being perceived as overweight. By addressing this head-on, AllLife wants to give you a better understanding of and accessibility to life insurance so that your loved ones can have a secure financial future. Because everyone deserves the right to be insured,” ends Bester.