LEGALLY SPEAKING – Cash-strapped consumers cashing out on life savings to survive
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GUEST - Hennie de Villiers, deputy chair of the Asisa Life and Risk Board Committee
South Africa has seen an increase in financially distressed consumers cashing out their savings/investments and surrendering their insurance policies to survive, as they feel the sting of the country’s sharp economic slowdown, according to the Association for Savings and Investment South Africa (Asisa).
Hennie de Villiers, deputy chair of the Asisa Life and Risk Board Committee, said this is evidence that South African consumers are facing “unprecedented hardship”.
On Wednesday, Asisa released its long-term insurance statistics, showing that one million more recurring premium policies lapsed during the course of 2022, compared with 2021.
In total, 8.4 million policies lapsed, which occurs when a policyholder stops paying premiums for a risk policy with no fund value, Asisa said.
South Africa has seen an increase in financially distressed consumers cashing out their savings/investments and surrendering their insurance policies to survive, as they feel the sting of the country’s sharp economic slowdown, according to the Association for Savings and Investment South Africa (Asisa).
Hennie de Villiers, deputy chair of the Asisa Life and Risk Board Committee, said this is evidence that South African consumers are facing “unprecedented hardship”.
On Wednesday, Asisa released its long-term insurance statistics, showing that one million more recurring premium policies lapsed during the course of 2022, compared with 2021.
In total, 8.4 million policies lapsed, which occurs when a policyholder stops paying premiums for a risk policy with no fund value, Asisa said.
