LEGALLY SPEAKING – Cash-strapped consumers cashing out on life savings to survive

GUEST - Hennie de Villiers, deputy chair of the Asisa Life and Risk Board Committee<br /> <br /> South Africa has seen an increase in financially distressed consumers cashing out their savings/investments and surrendering their insurance policies to survive, as they feel the sting of the country’s sharp economic slowdown, according to the Association for Savings and Investment South Africa (Asisa).<br /> <br /> Hennie de Villiers, deputy chair of the Asisa Life and Risk Board Committee, said this is evidence that South African consumers are facing “unprecedented hardship”.<br /> <br /> On Wednesday, Asisa released its long-term insurance statistics, showing that one million more recurring premium policies lapsed during the course of 2022, compared with 2021.<br /> <br /> In total, 8.4 million policies lapsed, which occurs when a policyholder stops paying premiums for a risk policy with no fund value, Asisa said. <a href="http://www.kayafm.co.za/">Kaya FM </a>