Insurance is a contract (agreement) between an insurance company (e.g. Metropolitan) and a person. It is meant to protect the person and their family from financial hardship in case something very serious like an accident or unexpected death happens.

The insured person pays a monthly premium, and the insurance company in turn promises to pay the insured or his/her dependents money to cover the loss when the event happens. Insurance policies may be especially important to families where there is only one breadwinner or where there are still young children.

The Association for Savings and Investment South Africa (ASISA) is the umbrella body of the insurance industry. ASISA represents the majority of South Africa’s asset managers, collective investment scheme management companies, linked investment service providers, multi-managers, and life insurance companies. It was formed in 2008, combining several key players in the saving and investments industry, including the Association of Collective Investments (ACI), the Investment Management Association of South Africa (IMASA), the Linked Investment Service Providers Association (LISPA) and the Life Offices’ Association (LOA).

ASISA comprises voting and non-voting members. The following insurance companies are amongst its members:

• Liberty Group Ltd
• Hollard Life Assurance Company Ltd
• Old Mutual (South Africa) Ltd
• Discovery Holdings Ltd
• OUTsurance Life Insurance Company Ltd
• Lombard Life Ltd
• Clientèle Life Assurance Company Ltd
• Sanlam Ltd

There are 2 main types of insurance contract:

• Indemnity insurance
• Non-indemnity insurance

People living with HIV or AIDS can also speak to their insurance company about what other financial planning options there are (besides a life insurance policy). For example, it may be better to consider an education policy to make sure that children are provided for.