Life insurance is not a set-and-forget product. Here are five clear signs that your current policy may no longer be doing its job — and what to do about it.
Most South Africans take out a life insurance policy at some point — often when they buy their first home, start a family, or join a company with a group benefits scheme. And then they forget about it. The policy sits in a drawer (or more likely, in an email folder), the premiums debit every month, and the assumption is that everything is fine. Often, it is not.
Life insurance is not a set-and-forget product. Your cover needs change as your life changes, and a policy that was perfectly adequate five years ago may leave your family seriously underprotected today. Here are five signs that it is time to review your cover.
Sign 1: You have not reviewed your policy in more than three years. This is the most common situation we encounter. If you cannot remember the last time you looked at your policy schedule, checked your cover amount, or confirmed your beneficiary details, a review is overdue. Inflation alone erodes the real value of a fixed cover amount over time — R2 million in cover today is worth significantly less in purchasing power than R2 million was three years ago.
Sign 2: Your life has changed significantly. Marriage, divorce, the birth of a child, the death of a dependant, a major salary increase, a new bond, or the start of a business — any of these events can materially change how much cover you need and who should receive it. If any of these apply to you since you last reviewed your policy, your cover may be misaligned with your current circumstances.
Sign 3: Your beneficiary details are out of date. This is one of the most overlooked aspects of life insurance. If you took out your policy before you were married and your spouse is not listed as a beneficiary, the payout may not go where you intend. If you listed a parent or sibling who has since passed away, the benefit may be paid into your estate — triggering executor's fees and delays. Beneficiary details should be reviewed every time your family structure changes.
Sign 4: You rely primarily on group cover through your employer. Employer-provided group life cover is a valuable benefit, but it has two significant limitations. First, it typically provides cover of two to four times your annual salary — often well below what your family would actually need. Second, it disappears the moment you leave the company. If you change jobs, are retrenched, or start your own business, you lose your cover at exactly the moment when you may be under the most financial pressure. Personal life insurance that you own and control is a critical complement to group cover.
Sign 5: You have never had your cover independently assessed. Many South Africans take out life insurance through a bank, a direct insurer, or a tied agent — someone who represents a single product house. These advisors can only recommend the products their employer offers, which may not be the most appropriate or cost-effective solution for your needs. An independent, FSCA-registered financial advisor has access to the full market and can assess your cover objectively, without a product sales incentive.
What to do next. If any of these signs apply to you, the most important step is to get an independent review of your current cover. At WB Financial Planning, we offer a free life insurance review — no cost, no obligation, and no sales pressure. Warren Basel, CFP® and FSCA-registered advisor, will assess your current policy, identify any gaps, and give you a clear picture of where you stand. Book your free review today and find out if your life insurance is still working for you: wbfinancial.solutions/lp/life-insurance-review
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