A life insurance policy serves as a financial protective measure in the event that the policyholder was to pass away. Regardless of age, all adults should consider getting a life insurance policy, if they haven’t got one already.
Whether you have debt to pay or a family to provide for, life insurance policies are a great way to ensure that your responsibilities are taken care of when you’re no longer able to.
What Is Life Insurance?
Life insurance is essentially a contract between an insurance company and a policyholder. The policyholder is liable to pay a premium in exchange for certain benefits, which are outlined in the contract. These benefits may vary from one policy or company to another.
When the policyholder dies, the company pays out a “death benefit” in the form of a once-off lump-sum in order to cover any costs the dependents may have. Especially to replace the lost income that would usually be used to cover said costs. This may include:
- Funeral costs
- Personal loans
- Medical bills
- School fees
Several different types of life insurance cater to specific needs. However, most types serve to cover the costs of the expenses mentioned above. The payout may also be applicable in situations where the policyholder becomes disabled or severely ill.
What To Consider When Comparing Life Insurance Quotes
There are a number of factors to consider before settling on a life insurance policy. These factors may influence, for example, your eligibility for a specific policy, or the cost of the premium. Some common factors include:
- Health risks
Everyone is looking for the cheapest life insurance in South Africa. But high-risk factors, such as age and being more prone to injury and disease, may cause you to pay a higher premium cost.
So if you’re trying to get real value for money and the best life cover for you, it’s definitely something you’ll need to keep in mind.
List Of Insurance Companies In South Africa
South Africa is notorious for being one of the most dangerous countries to live in. From high crime rates to road safety, living in South Africa is, essentially, high-risk. For this reason, it’s crucial for one to invest in a life insurance policy.
But where to begin?
Insurance companies are not hard to come by. But if you needed a little extra guidance, we’ve compiled a list – in no particular order – of the most common life insurance companies in South Africa below:
1. 1Life Insurance
With 1Life Life Insurance, expect free financial advice, an online financial needs analysis tool, no paperwork and no compulsory medical examinations.
Policyholders can receive up to R500 000 in a tax-free lump-sum, with the option of upgrading to R3 million. In addition, clients can save on their insurance premiums when applying online.
2. Clientèle Insurance
While Clientèle Insurance cover options may vary, they include a basic accidental death plan for R210 monthly. They also allow policyholders to include accidental disability cover, premium payback benefit, and up to R3 million in additional cover for critical illnesses.
With the Clientèle Premium Life Plan, clients can receive up to R10 million in cover and a 100% pay-out when the policyholder is diagnosed with a terminal illness.
3. First For Women Insurance
Designed specifically to suit the needs of South African women, First For Women gives the options of disability cover, dread disease cover, and pure life insurance.
Their lifelong cover options can include up to 10 beneficiaries with up to R10 million in cover. In addition, they offer extra benefits unique to First For Women clients.
4. MiWay Insurance
MiWay offers a unique 4-in-1 insurance plan. This includes accelerated funeral cover, comprehensive life insurance, family funeral cover, and a terminal illness accelerator benefit. These cover options grow by 5% annually, include up to 16 dependents, and all fall under one premium.
5. Sanlam Insurance
This international multi-award-winning insurance company offers flexible premiums from as little as R100 a month. Sanlam also assists by assessing your financial needs to help determine the best cover option for individuals.
They also offer a once-off, tax-free pay-out to dependents in the event that the policyholder passes away. In addition, you can expect up to R10 million in cover and an immediate pay-out of R500 000 for any necessary expenses.
6. FNB Life Insurance
According to the South African Customer Satisfaction Index, FNB Life Insurance has been the most satisfactory insurance company for two years running.
This company offers comprehensive cover plans for up to R10 million and includes the option to add extra benefits such as disability and critical illness cover.
7. Discovery Insurance
Discovery Insurance has nine life insurance plans available to suit various budgets and lifestyles – including insurance that pays out in US dollars.
Cover options start from as little as R100 a month and provide the option to cover disability, income continuation, education and dread disease. In addition, they’re one of the few companies that reward healthy lifestyle choices.
8. AVBOB Insurance
AVBOB boasts over 90 years of industry experience. They reward loyal customers with 20% of their total premium costs back every 5 years if paid within a five-year period. They also offer free funeral benefits and include the option of extended family funeral insurance.
9. Hollard Insurance
The country’s largest privately-owned insurance company offers cover of up to R1.2 million under its Quick And Easy Life Cover Plan. This comes with no medical tests and 20% of your money back within five years.
However, members who tested negative for HIV within the past year receive 30% extra cover. The ‘My Life & More’ plan is based on a financial needs analysis and allows for home insurance and life insurance to be included in the same package.
Plus, they won’t collect any premiums during December.
OUTsurance offers individual cover for death, disability or critical illness, or a comprehensive life insurance plan that covers all of the above. Premium amounts are calculated based on the individual’s risk profile and are guaranteed for the first five years.
Policyholders can choose between fixed premiums or to increase cover every year. Plus, if you remain claim-free for a predetermined period, “you always get something out”. Meaning they reward you with cashback offers.
11. Liberty Insurance
Liberty offers both insurance and investment options tailored specifically for business, family or personal benefits.
Available plans include cover for critical illness, income, funerals, disability, accidents, and medical costs. Alternatively, one could opt to cover all of the above with a comprehensive plan.
Their investment options range from regular and retirement to lump-sum and investing to generate an income. This can be used to cover one’s family and future financially in the event that anything happens to you.
12. Old Mutual Insurance
Old Mutual Insurance provides great financial services, offering immediate life cover even before you pay your first premium, thanks to its 170 years of experience.
As a company that offers financial solutions in over 14 countries, it allows for an easy application and approval process with up to R3 million in cover.
The three main life insurance options include Old Mutual Life Insurance, Old Mutual Life Plan Range, and Greenlight Life Cover.
13. DialDirect Insurance
Dialdirect’s life insurance plans are simple and easy to understand, purchase and maintain. Cover ranges from R50 000 to R10 million and can include cover for dread-disease, disability, funeral and accidental death.
An HIV test is required for dread-disease cover, but for the first two years, your premiums will remain the same.
Wrapping Up Life Insurance Companies In South Africa
With life these days being as uncertain as it is, a necessary and important decision to make is choosing life insurance. Whether you’re a newlywed couple or family of five, you can never go wrong in ensuring that your loved ones are cared for in the event that you’re no longer able to.
Be it outstanding debts or money to keep the household running, the payout of a life insurance policy can help keep things afloat. That’s why it’s crucial to find a company that understands your needs and does their best to help you prepare for the future.