The rising spectre of dread diseases among younger generations

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This interview was originally aired on RSG Geldsake in Afrikaans. The transcript below has been translated into English.

RYK VAN NIEKERK: Old Mutual helps South Africans protect what they consider most important in handling the uncertainties of life with confidence. Last year Old Mutual spent R15 billion on life insurance claims, and the group is also heading for its R100 billion milestone of payouts to policyholders since 2002.

The statistics also identify interesting trends in health risks increasingly affecting South Africans; these include cancer, heart disease, strokes, obesity and other chronic diseases.

This at the same time emphasises how important it is that people fully understand their insurance cover and are financially prepared when serious disease, disability or death strikes a household.

On the line we have Arno Jansen van Vuuren, head of Retail Marketing at Old Mutual. Arno, a warm welcome to the programme. Last year Old Mutual paid out R15 billion. That is a massive amount. I can only imagine the positive effect of the payment on households, especially at a very emotional period when not only might someone have passed away, but where there may be loss of a breadwinner.

You probably see such cases as a matter of course.

ARNO JANSEN VAN VUUREN: We are very proud that since 2002 we have put almost R100 billion into the pockets of our clients at a time they needed it the most.

I think that’s the big thing about an insurance policy – that you take it out when you don’t need it, but the claim is paid out when you need it the most.

We also see the positive impact of that money into our clients’ pockets in the stories they share with their financial advisors, and in their gratitude when receiving those claims – that financial [in]dependency. You are no longer dependent on a person, but know that you are financially provided for.

Old Mutual is very proud of that role we play for our clients.

RYK VAN NIEKERK: The statistics always give interesting information about trends and especially about the health risks South Africans face. What are the main trends that the statistics show?

ARNO JANSEN VAN VUUREN: Earlier in the conversation you mentioned the four biggest ones. We see that almost 70% of all claims are for these ‘four big’ diseases, as we call them.

But the one I have to highlight is unfortunately cancer. Cancer is the biggest of all reasons for people claiming in respect of death and life benefits.

When people claim for disability or serious illnesses, we still see cancer as the major reason for claiming. It is what we see as the prime reason for claims.

So this is one of the things that our clients definitely have been aware of, and what listeners definitely need to be aware of because it is not something that happens to only a particular group of people.

Our statistics are telling us that the youngest claimant for whom we paid out for was 22 years old. The oldest claim associated with cancer was 83 years of age. So there is a wide diversity of people. Across men, women, and different occupations we see cancer as a source of concern for clients out there when it comes to claims.

RYK VAN NIEKERK: Let me again mention the ‘big four’ – cancer, heart disease, stroke and obesity.

But insurance is not merely for the payment of death claims. I’m sure there must be an impact on people who simply can no longer earn an income during and even after treatment.

ARNO JANSEN VAN VUUREN: Absolutely. That’s where many disability benefits come in – to say, listen, while you’re busy recovering and while you’re receiving treatment, if you cannot generate income your disability benefit can pay out. Whether it’s a lump sum or a monthly income, that product is there.

So you’re absolutely right.

It is not just a life insurance product that pays out on death. It’s also for disability, as well as dreaded disease cover – not necessarily for your anticipated income, but it says that, should these specific things happen to you, there is also a lump sum payout to help you with the costs and the unforeseen expenses.

Many people think that if they have medical aid and a gap cover they will necessarily be covered, but there are so many additional expenses to consider which, as you say, happen when you are unable to generate an income.

So each of these products is necessary, but the thing we are saying is we will cover you in the time of your greatest need, when you are struggling with this cancer or diagnosis – and this cover will be your mainstay, helping you get back on your feet.

RYK VAN NIEKERK: Many people who take out life insurance sign contracts that they don’t properly read, tossing them into a drawer. If they need to claim they are surprised because they did not know exactly what was in the contract.

Do you often see that? And what should people should do if they do have life insurance? Of course they need to review it regularly, but do you have specific points of advice?

ARNO JANSEN VAN VUUREN: I think the most important thing is to build a relationship with your financial advisor. That would be my principal advice – to say that a good financial advisor will in every case visit you every year.

As a client, as a listener, I would say make sure that your relationship with your advisor is strong.

Insist on that annual revision of your policies because, as your life changes, your cover should also change; ensure that it is adequate, or ask if it has perhaps become excessive.

As your income changes and your ability to pay changes, the policy terms should also change.

And then, as your lifestyle changes, you will need certain things more – or perhaps less. So my number one tip is to buy when you buy, and continue prioritising that relationship with your advisor.

It’s not like your dad saying ‘Remember, you have to do this and do that’. Your advisor is someone who walks alongside you over the long term, and will make sure that you and your family are properly covered when you need it.

RYK VAN NIEKERK: Your statistics also show that more young people are unfortunately starting to claim.

ARNO JANSEN VAN VUUREN: That’s unfortunately true.

Just a few reasons we can give – we can be technical about the definitions according to which claims are paid – are how these products are adjusted over the years as they are now also providing for lighter and less serious diseases; and that’s why you would expect claims from younger and younger generations.

But what we do unfortunately see is that certain diseases – diseases we previously saw among the middle-aged – are starting to crop up and play a role in the lives of younger people.

So it’s important to know that these lifestyle diseases that we have talked about are not something just for your old age. It is essential to start early and make sure you live healthily and do the necessary things.

But unfortunately, there are also certain cancers that have nothing to do with your state of health and are popping up everywhere.

It is important to make sure early on that you are covered. That is not to scare people, but just to make it clear that we see the data and want to tell people to ensure that you are aware that these things happen and that it is so important to arrange your risk cover.

ARNO JANSEN VAN VUUREN: Arno, thank you. That was Arno Jansen van Vuuren, head of Retail Marketing at Old Mutual.

Brought to you by Old Mutual Group Communications. 

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