Shortfall runs into trillions
The 60-percent shortfall in risk life assurance translates into R9.3 trillion in the event of death before retirement and R14.7 trillion in the event of permanent disability before retirement.
The actual amount of death cover required for all employed South Africans is R15.1 trillion, while the amount for disability cover is R24.4 trillion. To put these amounts into perspective, government’s budget to run South Africa this year is R1.14 trillion.
A trillion is R1 million million, or R1 000 billion. If you earn R10 000 a month, you would have to work for more than eight million years to earn R1 trillion.