Capitec sounds the alarm over R50.4 trillion gap in South Africa

• The R50.4 trillion gap in South Africa refers to the disparity between life and funeral insurance coverage, with many South Africans overinsured for funeral cover but underinsured for life insurance.
• The average South African income earner has a shortfall of around R3.1 million in death and disability cover, which would require a 34% reduction in household spending after the death of a breadwinner.
• Capitec is calling for the insurance industry to change its approach to communicating the importance of life insurance, highlighting the need for a more nuanced understanding of the different types of coverage.