How Discovery Life's 2024 claims payouts show the true value of life insurance - while you're still alive

In an era of medical advances and healthier lifestyles, a longer life means that many of us must think about how we'll maintain our lifestyles if something happens while we're still alive, like if we're unable to work because of a disability or severe illness.

Traditionally, life insurance is viewed as cover that only pays out when you pass away. However, future-forward life insurers, like Discovery Life, understand that life cover should also allow you to keep living your best life - no matter what life throws at you. You should also be financially rewarded for living well while you're still alive.

In 2024, Discovery Life paid out more in living benefits and rewards than death claims

The recently published Discovery Life Claims Experience data shows that from January to December 2024, Discovery Life paid out a combined R5.5 billion in living benefits (severe illness, disability and income protection claims) as well as shared-value rewards, like cash back and retirement funding boosts. In contrast, we paid out R3.4 billion in life cover claims due to death.

"This bucks industry trends, as more Discovery Life clients receive payouts while they're still alive - not only when they pass away," says Gareth Friedlander, Discovery Life's Deputy CEO.

Of the R2.4 billion in shared-value benefits, which are financial rewards based on how well clients managed their health and finances, R1.4 billion was paid in PayBacks and R1 billion in Cash Conversions.

"Combined with our living benefits, this flips the life insurance script. With people living longer, life insurance isn't only about protecting one's legacy, it's also about ensuring that life cover a broad range of risks while rewarding clients for a life well-lived."

How shared value incentivises healthy behaviour

A key reason Discovery Life can return more value to clients is Discovery Life's integration with Vitality, Discovery's behavioural programme that encourages and rewards healthier choices.

In 2024, clients with a Gold or Diamond Vitality status had a 57% lower risk of death, and 47% lower disability risk than those who didn't participate in the programme.

These improvements in health translate into reduced risk for Discovery Life - and the savings are passed on to clients as shared-value rewards.

The PayBack benefit allows policyholders who engage with Vitality to accrue 50% of their life premiums back, paid in cash every five years. That payment can be doubled when clients choose to delay them by five years.

The Cash Conversion benefit helps clients supplement their retirement funding by paying out up to 100% of the value of their life cover through 10 yearly payments from age 65. Clients can grow the value of their life cover, and hence these payments, simply by managing their health and wellness before they turn 65.

"To date, Discovery Life has paid out R13.2 billion in PayBacks, and we expect to pay R7 billion in Cash Conversions in the next five years - in fact, we reached the R1 billion mark for the first time in 2024," says Friedlander.

The power of health screening for better outcomes

The 2024 Discovery Life claims data revealed that while cancer still dominates claims for death in women, and severe illness and disability for both sexes, more people are getting diagnosed early, thanks to increases in cancer screening.

"Thanks to the increase in screening rates, there has been a 62% increase in early-stage cancer claims compared to 2020's claims on illness cover, which is a great outcome because it will reduce future later-stage cancers," notes Friedlander.

"It's also undeniable that early detection remains key to better health outcomes. Studies show that on average, someone diagnosed with early-stage breast cancer can expect a 96% five-year survival rate, and men who are diagnosed with localised prostate cancer (it hasn't spread) have a 99% five-year survival rate."

Why proactive protection planning is so important

With people living longer, in part due to regular health screening, the need for comprehensive risk protection is critical. The 2024 Discovery Life data shows there is a growing trend in multiple illness claims, especially among those over 60, with 28% of severe illness claims now coming from that age group. This is a number that's more than doubled in the past 10 years.

To emphasise the need for illness cover at later ages, Discovery Life paid out R128 million in converted severe illness claims. In these claims, a client's Capital Disability Benefit cover automatically converts to severe illness cover at a chosen benefit expiry age (either 65 or 70).

In 2024, Discovery Life paid out R1.54 billion for 2,900 severe illness claims. Of this, R275 million was paid out in second or subsequent claims, with nearly one in three making their third or subsequent illness claim, and some having claimed over 10 times.

These subsequent claims are most often related to the previous claim and therefore having severe illness cover that fully protects against this risk is crucial.

Offshore cover gives added protection in a changing world

Just like diversifying investments, diversifying risk cover was another standout insight from the 2024 Discovery Life Claims Experience. Discovery Life's Dollar Life Plan pays claims in US dollars - the most widely used currency. This offers protection from exchange rate volatility and global economic shocks, both of which the world has seen no shortage in 2025.

Since 2014, this plan has paid out over $34 million, and due to the dollar-denominated nature of the payouts, they were worth 19% more on average than the equivalent payouts would have been on Rand denominated policies.

Discovery Life has indeed changed the paradigm by continuing to pay out more clients in living benefits and tangible financial rewards. Underpinned by shared value that incentivises healthy behaviour, this innovative approach enables people to live longer and healthier, while at the same time protecting their future, no matter where they find themselves living, or their stage of life.

"Life insurance is no longer only about what happens once you pass away - it's about helping you protect, and live, your best life," concludes Friedlander.

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