Addressing South Africa’s growing need for disability cover

Thato Mahapa, Provincial General Manager: Old Mutual Personal Finance 

Many South Africans live as if disability is something that happens to other people and not them. They believe that serious accidents, illnesses, or conditions can disrupt their ability to earn an income. The reality is far more sobering, as the disability insurance gap in South Africa is already massive and probably growing. 

One of the most prevalent causes of disability insurance claims today is not a dramatic accident. It is musculoskeletal disorders, which the World Health Organisation defines as conditions typically characterised by pain, often persistent, and limitations in mobility and dexterity, reducing people’s ability to work and participate in society. 

In fact, according to research published in the South African Journal of Physiotherapy, lower back pain, a musculoskeletal disorder, is the most frequently cited condition and the primary reason for work interruptions and reduced activity. 

In 2024, Old Mutual paid out R297 million in disability claims. Musculoskeletal disorders accounted for 23% of lump sum disability claims and 55% of disability income claims. These are not “freak accidents or events”; they are everyday injuries and conditions that can quietly sideline breadwinners, often for months or even years. 

The Association for Savings and Investment South Africa (ASISA) puts the country’s disability insurance shortfall at R19.3 trillion. For people aged 30 to 39, which represents roughly nine million workers, that is a gap of R1.5 million per person.  

ASISA further found that, on average, South Africans have only enough cover to replace about 45% of their household income needs if they become disabled. The rest of the gap forces families to cut spending, dip into savings, or rely on relatives for financial support, and this often creates a negative long-term ripple effect on household savings. 

Without sufficient cover, disability can mean losing independence and dignity for people who were once breadwinners. Recovery can also become more difficult when financial stress adds to the pressure. 

Often, choosing your preferred cover doesn’t have to be a tedious process. With the help of your financial adviser, you can choose your cover (either a single payout or monthly payment). You can enhance your cover with additional benefits such as Cash-Back and Premium Protection. The process helps to tailor the cover to your specific need.  

It is understandable that, for many, budgets are stretched to breaking point. But if we are serious about protecting our families, insurance has to sit alongside food, housing, and transport in the “essentials” column of the budget. Without it, the financial fallout from a disability can undo years of progress in a single moment.