The launch of life insurance by Dis-Chem Life, a new Dis-Chem group subsidiary, creates an equitable market for all participants and removes previous barriers that have traditionally existed.

Dis-Chem’s life insurance offering follows the introduction of medical insurance and gap cover and supports one of Dis-Chem’s eight strategic focus areas aimed at delivering long-term shareholder value: the integrated health ecosystem. Through this ecosystem, Dis-Chem reimagines healthcare access by offering a portfolio of health-centric financial services products, seamlessly integrated with the Group’s pharmacy and clinic footprint.

Its products provide flexible, inclusive options that challenge traditional life insurance models, while addressing a significant gap in coverage for people with chronic conditions like diabetes, hypertension and HIV.  People suffering from chronic conditions are traditionally seen by the insurance industry as high-risk, irrespective of how they manage their health. Until now they have invariably faced inflated premiums which are much higher than those without chronic conditions.

Dis-Chem Life differentiates itself in the market by offering a unique product suite and structure, providing affordable cover while rewarding healthy lifestyle choices.

“Traditional life insurance has long been a grudge purchase – complicated, impersonal, and often only valuable after a claim,” says Rui Morais, Dis-Chem Group Chief Executive.  “For many South Africans, especially those living with chronic conditions like hypertension, diabetes or HIV, life insurance has been out of reach due to limited options and high premiums.  Dis-Chem Life has addressed that gap by creating products that offer comprehensive coverage at premiums paid by healthy consumers, increasing access to affordable life insurance to many of those who have been excluded from this vital component of insurance protection.”

Recognising this gap, Dis-Chem Life has taken decisive action to address it by introducing a new model that gives value back based on how well individuals manage their health and chronic conditions. Policyholders are supported through Dis-Chem’s integrated healthcare services, with regular health checks at no additional cost via its network of hundreds of clinics nationwide, and easy access to medication and prescription reminders, ensuring those who actively manage their health benefit from better value.

Greg Smith, CEO of Dis-Chem Life says the financial reality of inadequate life cover is significant. "Many South Africans don’t have enough life or disability cover to protect their families. If the main breadwinner passes away or becomes disabled, their loved ones could struggle to afford daily expenses, school fees, or even a home. According to the National Institutes of Health (NIH), 20% of deaths among South Africans aged 35 to 64 are due to chronic diseases linked to lifestyle. Yet, most people are underinsured, leaving their families vulnerable when they need support the most.”

“The financial impact of the insurance gap on households is massive and we have the opportunity to address this, and to increase access to the traditionally underserved market.”

With 1.2 million Dis-Chem customers living with chronic conditions, life insurance can be more than just financial protection—it can be a tool to improve healthcare access and drive better health outcomes. By integrating cover with essential health services, such as regular check-ups, medication support, and proactive disease management, Dis-Chem envisions a future where people live healthier, longer lives.

A key differentiator is Dis-Chem’s holistic ecosystem that turns everyday health actions into tangible value through a reimagined extraRewards programme, available only to policyholders.  With free annual checks to benchmark health, instant and tangible rewards can be unlocked in the form of discounts ranging from 20% to 100% on extraRewards products – a range of thousands of everyday essentials.  At maximum savings, they can earn monthly discounts equal to their full insurance premium up to R3 000, unlocking tangible value.

Dis-Chem Life’s new insurance offerings comprise life cover; critical illness cover which will offer combined payouts of up to 500% for illnesses like cancer, and will give some of the highest payouts in the market for valid claims*; disability cover; income protection (temporary and permanent); education protection (including education legacy cover covering private and elite schools, as well as more affordable education protection); funeral cover and grocery protection.

Dis-Chem Life’s innovative model not only redefines the way life insurance works but aims to make it simpler, smarter and more rewarding from day one.

“We knew life insurance had the potential to be a game-changer in the market. We designed Dis-Chem Life’s products and extraRewards to change the narrative by focusing on health first, rather than following the wellness narrative commonly used globally,” says Morais.

“The addition of life insurance is a natural extension to our current healthcare services. We serve 1.2 million chronic patients who frequently struggle to access affordable life insurance because of their conditions.  Our ability to track and understand the health consumption risk of our 15 million shoppers, including chronic patients, gives us a unique competitive edge in pricing and product offerings. The AI and data-driven approach enables us to equitably and fairly price life insurance products. This translates into our ability to offer more favourable premiums, effectively merging healthcare and life insurance.”

“Our ambition is to contribute to a sustainable diversified health and financial services ecosystem which will provide tangible value and increase access to healthcare.  This is witnessed by the group’s evolution from retail pharmacy to a fully integrated health ecosystem.”

“We are democratising life insurance with the goal of making insurance accessible, affordable and valuable,” Morais concludes.