Too young for life insurance cover? The data suggests otherwise

Discovery Life claims data shows that serious illness and disability can affect young adults far earlier than many people expect. Over the last five years, Discovery Life paid R378 million in claims to clients under 30.

Johannesburg, 22 June – If you’re in your 20s and building a career, life insurance may not be high up on your list of priorities. It can feel like something you’ll need later in life, or once you have more assets.

However, Discovery Life claims data suggests a different story.

In the last five years (2021 to 2025), Discovery Life paid R378 million to clients aged 18 to 30, including R235 million in living benefit claims, which supported clients through severe illness, disability and income loss. In 2025 alone, the youngest life cover claimant was just 23 years old, while Severe Illness Benefit and Income Continuation Benefit claims were paid to clients as young as 24.

“It’s easy to think of life insurance as something that only pays out when you die, but modern life insurance covers much more than just death,” says Kashmeera Kanji, Head of Market Analytics at Discovery Life. “Our recent claims data across our full suite of benefits shows that serious illness and disability can affect people much earlier than expected.

“When an unexpected life event happens, the right cover can make the difference between staying on track financially and having to start over. While saving, investing and accumulating assets early is important, a serious illness or disability can derail financial progress almost overnight if you don’t have the right cover in place.”

When life takes an unexpected turn while you’re building your future

Without a financial safety net, a serious health diagnosis or permanent disability can severely impact a young adult’s ability to meet essential expenses such as rent, groceries, medical aid, and debt repayments, including student loans and vehicle finance.

Living benefits included in life insurance cover provide financial support when serious illness, disability, or injury affects a person’s ability to work or maintain their lifestyle. The Severe Illness Benefit pays a lump sum following a diagnosis of a qualifying severe illness, while the Capital Disability Benefit provides a lump-sum payment if a person becomes disabled and potentially unable to work. These benefits can help cover costs such as specialised medical equipment, home modifications, or medical expenses over-and-above what medical aid and gap cover would pay for. In addition, the Income Continuation Benefit replaces net income when illness or disability affects one’s ability to work.

Take, for example, the 26-year-old medical doctor whose career changed in an instant after an accident left him with permanent arm and hand paralysis. Unable to continue practising as a doctor, he has since received more than R6 million in living benefits from Discovery Life:

• Over R3 million in Income Continuation Benefits
• Over R2 million in Capital Disability Benefits
• Nearly R1 million in Severe Illness Benefits

Not every claim starts with an accident. For another young Discovery Life client, who was diagnosed with a chronic illness when he was 30, severe pain, fatigue, weight loss and other debilitating symptoms affected his lifestyle and ability to work. The illness also resulted in ongoing and expensive medical and lifestyle costs. To date, the client has received R1,1 million in Income Continuation Benefit and R1,6 million in Capital Disability Benefit payouts.

“By getting the right cover early on, these young clients are still able to afford a comfortable lifestyle now and well into the future, in spite of these unexpected life-changing events,” says Kanji.

“Life insurance is also instrumental in creating a financial safety net for those who depend on you. Many young people are also contributing to their family’s household expenses, such as a sibling’s education or supporting parents or grandparents. Losing the ability to earn an income can create a ripple effect across the whole family.”

Financial protection when illness and disability derail your best-laid plans

Discovery Life’s 2025 claims data shows that 20% of clients under 30 who claimed for the Income Continuation Benefit are permanently disabled.

The leading causes of Income Continuation claims among this group are musculoskeletal conditions (affecting muscles, bones and joints), mental and behavioural disorders, and infections, showing the breadth of risks that can disrupt one’s ability to earn an income.

Cancer remains the leading cause of severe illness claims for this age group, followed by nervous system conditions. Severe illness cover pays a lump sum based on the severity of the diagnosis, enabling clients to fund treatment, recovery and necessary lifestyle adjustments.

The youngest life cover payout was for a client who died aged 23, while the average life cover payout for clients under 30 was R1,1 million, challenging the perception that life cover is a “grudge purchase” and only relevant later in life.

“Over the last five years, 62% of the total claims paid to clients under 30 were living benefit claims. This shows that life cover is not only about providing for beneficiaries when you’re gone but also protecting your ability to keep building your future,” says Kanji.

Possibility is something worth protecting

Taking out life insurance at a young age generally means more affordable premiums. Waiting until later in life, or being diagnosed with a chronic condition or severe illness, may result in higher premiums or complete exclusion from cover.

“Many people are surprised by how affordable life insurance can be, especially when taken out while you’re young and healthy. In some cases, premiums can cost less than a couple of takeaway meals or a monthly streaming subscription,” says Kanji.

Modern life insurance does more than protect against the unexpected. It can encourage healthier lifestyle and financial habits, helping you get value from your cover long before you ever need to claim.

“Your 20s are associated with possibility — working towards your goals, building a future, starting a career, and gaining independence. That possibility is something worth protecting. You can’t predict what will happen, but you can decide whether a serious setback becomes a financial crisis – for you and those who depend on you.”

“Being the first to protect your future may not seem exciting, but it can be the most important.”

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