Universal life products see the total premium paying for both the risk assurance (death and disability) policy and an endowment (savings) policy as one unit - but the customer's savings can be raided to cover increasing risk premiums. Heads the insurance industry wins, tails you lose, says Bruce Cameron.
Those in the life industry who don't comply with the spirit of legislation and regulation bring the credibility of the entire industry – and all its products – into question.
South Africans need a reputable industry. They are already very badly underinsured – something that has been accentuated by the deaths around Covid-19.