OPINION - During the Covid-19 pandemic, while thousands of small and medium businesses will not open or function to capacity, the workers and business owners will suffer financially.
The trillion-rand insurance companies and banks must also come to the rescue of their clients who cannot afford their policies due to the lockdown.
I'm referring particularly to the risk products (life cover, disability, critical illness, impairment).
Some companies did offer premium relief/premium holidays for retirement annuities or recurring paying investments.
However, they did not make this offer to clients with life cover, while those that made offers made unfair offers like asking clients to reduce benefits so premiums will reduce, or even to put cover on hold. But you will have no cover. This is totally unfair, and no help at all.
A policyholder can stop his or her retirement annuity or investment, and restart it when financially comfortable.
This may have very little or no impact on their age or health.
Unfortunately, they cannot afford to do this with their life or risk covers, as their age and health may make them uninsurable.
The poor souls could have been paying for their policy for 10 or 20 years and could lose it now, when they need it the most.
When a policy lapses, only the insurance company benefits. Unfortunately, the policyholder doesn't get a refund.
The insurance industry, together with the government, including the Financial Sector Conduct Authority, must give this priority.
The policyholder takes risk cover to protect against death and sickness so that he or she and their family do not become a burden to the state, and risk premiums are not tax deductible; it's a big sacrifice on the part of the policyholder.
Looking at the astronomical bonuses and increments the chief executives of the insurance industry earn, I am sure they can give a three-month premium relief for policyholders (May, June, July).
D Pillay Queensburgh