Joretha Bothma, Head of Product Development, Underwriting and Claims at Momentum Life Insurance

Comprehensive protection is critical to prevent the dilution of a carefully planned retirement. While most financial plans account for a traditional retirement timeline, the growing trend of increased longevity in South Africa requires advisers and clients to rethink their risk assumptions.

The reality is that many people are living well into old age. Our own data reflects this: in 2024, Momentum Life Insurance paid out life cover claims for eight centenarians, part of a 14-year trend of paying claims to clients over the age of 100. One life cover payout went to a woman born in 1919 who outlived both her children and grandchildren. While she lived a full life, she required specialised care in her final years. Her longevity is a reminder that long-term financial planning must extend well beyond the traditional retirement age.

This trend is supported by national demographics. Statistics South Africa reports that older people are South Africa’s fastest-growing demographic. While the estimated life expectancy in South Africa for 2025 is 64 years for men and 69.6 years for women, according to Stats SA, many people are exceeding this average. The number of South Africans over 60 grew from 3.5 million in 2002 to 6.1 million in 2024, an average annual growth rate of 2.51%. Momentum’s data confirms this, with 41% of total death claims for individuals over the age of 70 and the largest percentage increase in death claims for 2024 seen in people in their 80s and 90s.

While many older clients recognise the need for life cover to secure an inheritance, cover estate costs, or protect a surviving spouse’s income, few consider the financial impact of a critical illness in old age. This is the silent risk that can quickly erode a nest egg or eliminate an intended inheritance.

The data reveals a critical protection gap. In 2023, just 12% of South Africans had life insurance, according to the FinScope Consumer South Africa 2023 Survey. Momentum’s data, supported by the findings of the 2025 Insurance Gap Study, reveals that even fewer people have critical illness cover. A concerning insight is that 59% of our 2024 death claims had cardiovascular or cancer (critical illness) causes and 80% of these clients did not have critical illness cover with Momentum.

As people age, the likelihood of suffering a critical illness increases, making critical illness cover crucial. It provides a lump sum for treatment, palliative care, or lifestyle adjustments after suffering a critical illness.

As an example, when it comes to cancer, the lifetime risk is significant. One in two people will be diagnosed with cancer by age 85. In 2024, cancer accounted for 45% of Momentum’s critical illness claims.

The rising cost of newer therapies like advanced cancer treatments, often exceeds available medical aid benefits. When a critical illness strikes, the financial burden can extend beyond medical bills requiring spouses or relatives to stop working to care for the patient, sometimes for extended periods, resulting in lost household income. In some cases, patients may require 24-hour medical care, paid nursing assistance, mobility aids such as wheelchairs, and transport to appointments. These pressures can strain families across generations and lead to the dilution of retirement savings – precisely what proper planning is meant to prevent.

To truly protect a long retirement, it is crucial to include critical illness cover for a whole life term. Momentum Myriad, our flagship life insurance product, is designed to close this gap with the most comprehensive critical illness benefit in the market, offering cover across 20 defined claim categories, including early-stage cancer. Clients also benefit from the Breadth of Cover Guarantee®, a market-leading feature that ensures the highest likelihood of a successful critical illness payout in the market.

Clients who add the Longevity Protector (Critical Illness) benefit to their Momentum Myriad critical illness cover qualify for a Longevity Enhancer bonus payout equal to 20% of their critical illness cover, at age 80, if they have never claimed before then. This payout rewards clients for staying healthy and can provide a valuable boost to their retirement income. Best of all, the Longevity Enhancer payout does not reduce their cover – ensuring full critical illness protection remains in place should they ever need it later in life.

At Momentum Life Insurance, we advocate for a holistic, age-aware approach to risk planning. For financial advisers, this means challenging traditional life expectancy assumptions and proactively addressing the risk of critical illness to ensure every client has the financial peace of mind they deserve throughout their extended retirement.

ENDS