South Africans are increasingly claiming insurance benefits while they are still alive, with about 65% of claims payouts now going towards “living benefits”. According to Discovery Life, this shift towards severe illness cover, disability benefits and income protection is significant when compared with the death-claim-weighted payouts of previous years.
Discovery Life paid out R11.5 billion in claims in 2025, part of R36 billion over the past five years. The insurer processed 9,298 claims last year at a payout rate of more than 99%. Claims were declined in a small number of cases: non-disclosure accounted for 0.4% of rejections, misrepresentation for 0.15%, and fraud at 0.15%.
Why Living Benefits Matter
“Trying to break that narrative that life insurance is for death is very important,” says Kashmeera Kanji, head of Distribution Strategy and Market Analytics at Discovery Life. “We see claims across all ages; death is not just an old age thing. It happens across the board.” One of the clearest shifts in claims patterns is the rise of policyholders claiming more than once.
As medical treatment improves, more people are surviving serious health events such as heart attacks, strokes and cancer – but those same individuals may face further complications later. The Association for Savings and Investment South Africa (ASISA) calculates that if households wanted to maintain their standard of living after what it terms a “death event,” the collective shortfall amounts to R21.1 trillion – or R3.1 million for the average earner.
Multiple Claims on the Rise
In 2025, Discovery paid R320 million to multiple claimants. Clients who had submitted a severe illness claim before 2025 made up 4% of its risk pool but accounted for nearly a quarter of all severe illness claims last year. The probability of claiming again after a first claim is almost 600% higher than average, says Discovery Life deputy CEO Gareth Friedlander.
Here are some key statistics on insurance claims in South Africa:
- 65% of claims payouts are for living benefits
- R11.5 billion in claims paid out in 2025
- R36 billion in claims paid out over the past five years
- 9,298 claims processed in 2025
- 99% payout rate for claims
For more information on life insurance and living benefits, visit the Discovery website.
