Why are people under thirty in South Africa neglecting life insurance?
Many people under thirty in South Africa neglect life insurance policies. This creates a significant coverage gap.
According to the 2024 Old Mutual Savings and Investment Monitor, 62% of young adults (18 to 29 years) recognize the importance of financial security.
However, only 17% have life insurance coverage. This is attributed to a tendency among young people to delay important financial decisions.
They usually understand the importance of it and are aware of the need for it However, they see insurance as something that can be delt with at a later point in time.
This leaves them vulnerable to unexpected events. At the same time, the leading cause of death for people under thirty in South Africa is unanticipated accidents.
Motor vehicle accidents even account for 43% of trauma-related death claims. Therefore, the importance of life insurance as a financial safety net needs to be emphasized.
It protects the policyholder as well as their loved ones.
How does the UK compare in life insurance coverage among young adults?
In the UK, people under 30 and in their 30s face a similar issue with insufficient life insurance coverage.
A report by Hargreaves Lansdown indicates that many people in their thirties rely heavily on emergency savings rather than comprehensive life insurance policies.
This is worrying, as these people are more likely to have young families and significant mortgages.
Only 30% of those aged 30 to 34 have adequate life insurance. This figure slightly rises to 35% for those aged 35 to 39. Even among couples with children, only 26% have enough life cover.
Sarah Coles, head of personal finance at Hargreaves Lansdown, stresses that many people overlook life insurance as part of their overall financial planning.
This could leave their families financially vulnerable in the event of their death.

Is the situation different in the USA?
The situation in the USA mirrors the trends seen in South Africa and the UK. People under thirty similarly neglect life insurance.
Despite understanding the importance of financial security, many young Americans also do not prioritize life insurance.
Various financial challenges and a preference for immediate gratification over long-term benefits contribute to this trend.
However, life insurance in the USA is usually more affordable when purchased at a younger age due to lower premiums associated with better health.
Financial experts recommend that young adults consider life insurance not just for immediate family protection but also as a way to secure lower premiums and long-term financial stability.
Ensuring comprehensive coverage and regular policy reviews are essential to meet changing life circumstances.
Across South Africa, the UK, and the USA, the need for financial education is clear.
Misconceptions about the cost of life insurance deter people under thirty from investing in policies that could provide critical support in times of crisis.
Financial advisers play a crucial role in helping them understand the long-term benefits and affordability of life insurance.
They need to guide them to make informed decisions that secure their and their loved ones’ futures.