Think your job’s got you covered? The insurance gap young professionals face
Many young professionals assume insurance is something to think about later — after buying a home or starting a family.
Source: Pexels.
In reality, the moment you take on financial responsibilities such as rent, car finance or student loans, you’re already at risk. A single unexpected event could undo years of hard work and leave those who depend on you to shoulder the financial consequences.
Yet according to the 2022 Life and Disability Insurance Gap Study released by the Association for Savings and Investment South Africa (Asisa), earners under 30 have life and disability cover for barely half of what they would need if disaster struck — an average shortfall of R1.6m for life cover and R1.7m for disability.
Young professionals are among the most financially exposed, with cover that would barely touch the real costs of an emergency.
“Many think they are adequately covered through their employer benefits, but these often fall far short of actual needs,” says Tracy Afonso, Executive: Private and Wealth Strategy.
“The gap becomes painfully clear when an accident, illness, death or retrenchment happens. Without sufficient cover, the financial consequences are immediate and lasting.”
Insurance isn’t one-size-fits-all. Young professionals need solutions that reflect their risks and life stage. Whether you’re starting your career, supporting family or planning a household, there’s the mix of cover to suit your needs:
- Just starting out? Protect essentials such as your car, phone and home contents.
- Growing your life? Add income protection, travel insurance and homeowners’ cover.
- Supporting family? Life and disability cover can secure their future if something happens to you.
- Starting a family? Choose life cover that grows with your responsibilities. The key is to start with the essentials, then expand as your situation evolves.
“Your insurance should be as personal as your financial goals,” says Afonso. “Premiums are often lower when you’re younger and healthier, and life’s surprises don’t wait until you’re ready. The best time to start is now.”
If you owe money and something happens to you, the debt doesn’t disappear. It may fall on those you leave behind.
Even short-term setbacks can strain finances. A minor accident that keeps you out of work for a few weeks can be manageable with the right safety net — but without it, missed payments and penalties can quickly add up.
“The best time to get cover is before you need it,” says Afonso. “Waiting until you have a mortgage or a family might seem logical, but if you have financial obligations, you’re already at risk.”
Infrastructure, Innovation & Technology
Nedbank to decarbonise 26 branches using Growthpoint’s renewable energy certificates
Catchwords 8 hours
Expert guidance matters
Applications can be completed in minutes online or through an app, with the option of personalised advice from specialists, and comprehensive packages often include extras like roadside assistance or home-emergency services, adding practical value beyond the payout.
Choosing the right mix of cover can feel overwhelming, but professional advice makes it easier. A private banker, working with an insurance risk adviser, can assess your financial goals, lifestyle and future plans to recommend suitable protection.
Working with trusted specialists also helps you streamline your insurance and investment needs — from car and home cover to income protection, and from life and disability insurance to retirement planning.
They can review existing policies, eliminate unnecessary costs and make sure your cover keeps pace with your career and changing life stages.
“Take control of what you can,” adds Afonso. “You can’t stop a storm, prevent a break-in, or predict illness or job loss, but you can make sure those moments don’t derail everything you’ve worked for.”
Insurance shouldn’t be complicated, it should be empowering. It’s the peace of mind that lets you focus on building your best life, knowing your progress is secure. Think of it as a safety net that grows with you. Because protecting your progress isn’t just smart – it’s essential.