Many young professionals think of insurance as something for later. Later, when they have children. Later, when they own a home. Later, when there is more room in the budget. The problem is that responsibility often arrives before the budget feels ready.
With National Insurance Awareness Day on 28 June, Finchoice says it is worth rethinking why insurance is still seen as a grudge purchase, especially by consumers already managing rent, transport, groceries, debt repayments, and family responsibilities. Insurance can reduce the risk of an unexpected event becoming a financial crisis.
“Insurance is often treated as money you spend on something you hope never happens,” says Craig Whittaker, Chief Operating Officer at Finchoice. “But the real issue is what would happen to your family, your monthly commitments, or your debt obligations if life changed suddenly. Protection starts to matter long before a crisis arrives.”
Many people delay that decision because of a few familiar assumptions.
The first myth is that young people are too young for funeral or life cover. In reality, many South Africans start supporting parents, siblings, partners, or children while still in their twenties. The issue is not age. It is whether someone else would struggle financially if you were no longer able to contribute.
The second myth is that the family or community will contribute if something happens. Stokvels, burial societies, and relatives can provide important support, but they may not cover the full cost of a funeral, a medical emergency, lost income, transport, food, debt repayments, or the weeks that follow.
The third myth is that insurance is unaffordable or a waste of money. For many households, affordability is real. The point is not to overextend yourself. Start with cover that is sustainable, understand what is included and excluded, and review it as your responsibilities change.
Whittaker says a simple readiness check can help consumers decide whether they need to start looking at cover.
Start with these questions.
- Who depends on me financially, even partly?
- What monthly commitments would still need to be paid if something happened?
- Do I have savings that could cover an emergency?
- Which risk would create immediate financial pressure for my household?
- Have I compared basic cover options, not only on price but on what they include?
- Can I afford the monthly premium consistently?
“Insurance is really about the people and commitments that sit behind your unique circumstances and income. If one difficult event would leave your household scrambling to cover costs, then it may be time to seek advice when it comes to adding protection to your financial plan,” says Whittaker.
Digital financial tools can also help consumers manage their protection more proactively by providing easier access to policy information, payment dates, and cover options as circumstances change.
“Financial resilience is about giving your household room to recover from a shock. The right cover can help prevent one difficult moment from becoming a long-term financial setback,” says Whittaker.
About Finchoice
Finchoice brings digital financial access to South Africans through its ecosystem of technology-led financial services and individualised short-term loans, MobiMoney™, retail credit, insurance and value-added services. With a goal to build a more financially proactive and resilient society, Finchoice is giving consumers a better way to supplement, manage, and protect their finances when they need it. Backed by Weaver Fintech, which has deep experience with personal lending, insurance and payment products driven by data insights, Finchoice enables its clients to choose the best options to confidently support their financial goals.
Finchoice Africa Ltd is a registered credit provider (NCRCP 8162) and an authorised financial services provider (FSP No. 46962).
Finchoice SA (Pty) Ltd is an authorised financial services provider (FSP No. 52725). Guardrisk Life Limited is a licensed life insurer in terms of the Insurance Act 18 of 2017 and an authorised financial services provider (Reg No. 1999/013922/06; FSP No. 76).
For more information, visit the Finchoice website.