I remember a conversation with a friend a few years ago. She was in her early 30s, full of energy, and absolutely certain that “life insurance” was something people worried about at retirement age. Then a freak accident left her with limited mobility for nearly a year. Suddenly, all the things she assumed were permanent—her job, her income, her financial confidence—felt painfully temporary. That moment stuck with me. Not because she didn’t have a plan, but because she thought her plan was bulletproof. Turns out, there was a missing piece.
That missing piece? Premium protection.
Most of us like to think that once we’ve signed up for life cover, we’re sorted. As long as the premiums are paid, the cover stays active. But what happens when you can’t pay those premiums anymore—because a serious illness or disability stops your income? That’s when the reality check hits hardest.
Old Mutual’s Premium Protection feature was designed for that exact scenario. It’s one of those add-ons you might skim over when setting up your policy because it feels like an “extra.” But if you ever find yourself in that frightening gap—where your ability to earn disappears—it becomes the difference between keeping your life cover or losing it altogether.
Let’s unpack this properly. Not in jargon, but in a way that connects to what it really means for you, for your family, and for that sense of security we’re all secretly chasing.
So, What Exactly Is Premium Protection?
Think of your life policy like a safety net. It’s there for your loved ones if the unthinkable happens. But a safety net only works if it’s maintained. Life cover isn’t free; those monthly premiums are the threads that keep the net intact. Now, if a permanent disability or serious illness strikes and you stop working, those premiums can quickly become a burden—or completely impossible to pay.
That’s where premium protection steps in. In plain English: if you become disabled (or meet certain illness conditions), Old Mutual takes over your premium payments for you. You don’t lose your life cover because your income disappeared. They basically say, “We’ve got this.”
Simple idea, right? But deceptively powerful.
And here’s the nuance: a lot of people don’t think they’ll ever need it. “I’m healthy, I’m young, I have a good job,” the usual self-talk goes. I used to think that too. Then I read the stats: in South Africa, the likelihood of experiencing a disability before age 65 is higher than most people expect—higher than the risk of dying young, in fact. And unlike death, disability keeps you here, alive, facing bills every month.
Why It Matters More Than You Think
Imagine this scenario for a second. You’re 42. You’ve been paying life cover faithfully for over a decade. Your goal? To make sure your family has financial security if something happens to you. Then, one afternoon, a car accident changes everything. You survive—but you can’t return to your old job. Your income shrinks. Suddenly, that monthly premium feels impossible.
What happens next if you don’t have premium protection?
You cancel the policy. Or it lapses because you missed payments. And just like that, the financial safety net you built for your family disappears—right when you’re most vulnerable.
I’ve seen this play out. It’s brutal. And it’s avoidable.
Now, critics will argue: “But these extras cost more. Is it worth the extra rand every month?” Fair question. Insurance always walks that tightrope between affordability and adequacy. Nobody has an unlimited budget for cover. But think of it like this: paying a little extra now may save you from losing hundreds of thousands in future benefits. Premium protection is not about betting on bad luck—it’s about keeping your promises to the people who matter.
Breaking Down How Old Mutual Handles It
Here’s what stands out about Old Mutual’s approach: the benefit doesn’t just kick in for a catastrophic accident. It applies when you meet the defined criteria for disability or severe illness—conditions that significantly impact your ability to earn. The wording matters here because “disability” can mean different things in different policies. Old Mutual uses a medically assessed definition, not just a casual doctor’s note. It usually needs to be permanent, not a short-term issue like a broken arm.
Once approved, Old Mutual takes over the premiums on your behalf. Your life cover continues without interruption, and you don’t have to drain your savings to keep it active. That’s a big relief because, let’s be honest, when you’re dealing with a major health crisis, the last thing you need is a financial crisis tagging along.
But Let’s Be Honest—Is It Perfect?
Here’s where I like to pause and add a little realism. No product is flawless, and no insurance feature is a magic shield. For starters, premium protection doesn’t cover everything. If you just decide to quit your job or take a career break, that’s not covered. It’s strictly for medically assessed disability or severe illness. And the application process for such benefits can feel slow when you’re in the middle of a crisis. There’s paperwork, assessments, maybe a waiting period. If you’re expecting instant relief, you might feel frustrated.
Also, let’s not ignore the cost factor. Adding premium protection increases your monthly premium. Not by an outrageous amount, but enough that some people skip it—especially when budgets are tight. And, of course, there’s always the tiny voice in your head whispering: “What if I pay for this for 20 years and never use it?”
Here’s the counterpoint, though: isn’t that the nature of insurance? You pay for peace of mind, hoping you’ll never need the payout. For most people, the relief of knowing their cover won’t collapse when they physically can’t work outweighs the additional cost.
A Quick Story to Bring It Home
A couple of months back, I chatted with a client who had premium protection in place. Let’s call him David. In his early 50s, fairly fit, no major health issues—until an unexpected stroke changed everything. He couldn’t go back to his corporate role, and his income took a nosedive. He admitted that in the early days of his policy, he nearly removed premium protection to save costs. “It just felt unnecessary,” he told me. But after the stroke, when Old Mutual stepped in and continued his premiums, he said it was one of the smartest decisions he ever made.
That conversation hit me hard because it highlighted something most of us underestimate: disability isn’t just a health issue; it’s a financial one. And when your financial safety net disappears, the emotional stress skyrockets.
Should You Add It to Your Cover?
This isn’t a one-size-fits-all answer. If you’re young, healthy, and juggling student debt, adding extra features might feel like overkill. But if you have dependents, a bond, or anyone counting on that life cover, premium protection isn’t just a “nice-to-have.” It’s the quiet backup plan that keeps your main plan alive.
Personally, I’d frame it this way: What’s the point of paying for life cover for years if there’s a real chance you could lose it at the very moment you need it most? Premium protection exists to close that loophole.
Final Thoughts (Without the Sales Pitch)
Look, nobody likes paying for insurance extras. I get it. We’d all rather spend that money on something fun or tangible. But life has a habit of ignoring our plans. Old Mutual’s premium protection feature isn’t glamorous, and you’ll probably forget it exists—until the day it matters.
When that day comes, you’ll be glad your cover didn’t disappear along with your income. And trust me, that peace of mind feels a lot better than saving a few rand each month.
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