People typically start buying policies in their late 20’s and early 30’s. At this life stage the premiums are affordable and the projected returns at retirement age almost incomprehensible. Offering a handsome future to look forward to while at the same time giving real meaning to the ”don’t count your chickens before they’re hatched” expression …
Policy premium payment becomes a debit order ritual which – without exaggeration – becomes a forgotten about expense in the greater scheme of things. More so in the lives and times of expats now living abroad!
There are tens of thousands of South Africans who when they left the country also left their policies unattended. A great many of these policies became “paid up” because policyholders simply stopped paying their premiums and orphaned their investments.
What we call “orphans” is known in the industry as unclaimed policies with a collective value of more than R1 billion. No wonder the Association of Investment in South Africa is compelling insurance companies to track down the policyholders who this money belongs!
There’s a simple reason behind this obligation: this money can only ever be paid to the person, or nominated beneficiaries, in whose name the policy is registered.
Irrespective of where in the world you live or what your life stage or age – think back – are you perhaps the holder of a forgotten or paid up policy?