Life happens, unfortunately, and so does death. In instances of the latter, you want to be sure your family has everything they need to continue living, which is why you should seriously consider life insurance. But life insurance is more than just financial protection in case you die. Many life insurance providers also add disability cover and cover for severe illness and loss of income which gives you the benefit of having financial protection if you find yourself facing a difficult time in life. If you are on the market for life insurance, this list of life insurance companies in South Africa is an excellent resource.
What is Life Insurance, and How Does it Work?
Life insurance is insurance that pays a lump sum to beneficiaries in the event of your death. When you sign up for life insurance, you go through a risk assessment that determines how much you should pay monthly based on the risk factors in your life that could lead to death and how much life insurance cover you request.
For example, a healthy, low-risk 35-year-old with R500,000 life insurance is likely going to pay less than a 45-year-old with the same life insurance cover but with pre-conditions like heart disease or diabetes.
You should also always read the terms and conditions of your life insurance policy as there are clauses that dictate the circumstances your insurer will not pay out the policy or the waiting period for your family after they claim the policy.
Another aspect of life insurance you should be aware of is the annual increase in premiums. Your premiums can increase tremendously if your lifestyle changes, if you’ve had an illness or have been hospitalised, or if you miss a few premiums.
List of 20 Life Insurance Companies in South Africa
South Africa has plenty of insurance companies offering life insurance in addition to dedicated life insurers. Over the years, the number of companies offering life insurance has grown as more life insurers try to target different segments of the demographic: younger people, lower-income households, and those with pre-existing conditions.
1 Life’s life cover starts at R200 p.m., with cover reaching up to R10 million in life cover.
1st for Women’s cover ranges from R200,000 to R10 million. As an add-on to their life insurance, you can also get dread disease cover that covers illnesses like cancer, tumours, and organ transplants, in addition to disability cover that pays out a portion if you get disabled and can no longer work.
Absa has a two-tier life insurance system. You can get up to R1 million in cover only by answering three questions or up to R6 million in life cover if you complete a more in-depth assessment that should take 30 minutes.
Unlike other names on this list, Alexander Forbes doesn’t offer their own life cover; instead, they select life cover based on your needs from one of their list of life insurance partners.
Although Assupol is well-known for its funeral cover, they also offer life insurance with premiums starting at R90 per month and cover that ranges between R300,000 and R1 million.
Auto & General offers life insurance of between R200,000 and R10 million, with special cover for those over 65 years old.
Budget Insurance offers two life insurance policies: Basic Insurance cover and Elevated Life insurance cover. On the basic plan, you can get a life cover of between R50,000 and R200,000. With this life cover, they have no waiting period for accidental death and a two-year waiting period for natural death or suicide.
The elevated plan starts at R200,000 and extends to R10 million, including add-ons like Disablement cover.
Dial Direct offers life insurance between R50,000 and R10 million.
Discovery Life Insurance offers different life cover products based on age and marital status. It’s also one of the few life insurance companies that have life cover above R10 million.
FNB life insurance offers a range of life and terminal illness covering up to R100 million.
Hollard offers four life insurance products, with their basic and more affordable plan paying out up to R1.2 million.
If you are between 18 and 65 years old, you can apply for Liberty’s life cover. Liberty’s life cover starts from as low as R130 per month, with life cover reaching R10 million tax-free.
Metropolitan segments their life cover into two categories: those who take medical tests and those who don’t.
If you take a medical test, you could receive life cover of up to R5 million from as little as R100 per month. If you don’t take a medical test, you can receive a cover of up to R1 million, starting at R120 per month.
Momentum’s life insurance is divided into three categories that include various add-ons like disability cover, income protection, and critical illness cover. Additionally, the price range depends on the cover you choose.
MiWay is partnered with Sanlam and offers a four-in-one life cover policy that includes comprehensive life insurance, funeral cover, terminal illness cover, and funeral cover for family members. Their premiums start at R149 a month for R500,000 life cover or R200 a month for R1 million and increase significantly based on your lifestyle.
Old Mutual offers life insurance up to R3 million with a guarantee that premiums won’t increase for the first 23 months.
Outsurance life insurance offers up to R3 million for clients who don’t want to have medical or blood tests. Furthermore, policyholders can select to keep their cover and premium fixed for the duration of their policy or increase it annually and have their life cover increase alongside it.
Sanlam has a life cover of up to R10 million for those needing quick cover with no or limited medical testing. They also say their premiums start at R100 per month. However, they also offer unlimited cover for those who are willing to endure traditional underwriting that will include an extensive health and lifestyle assessment.
Simply is underwritten by Old Mutual and has life insurance policies from as little as R89 per month.
Stangen has life cover from as little as R100 per month for basic R100,000 cover up to R3.4 million life cover for as little as R600 per month. They also don’t require any medical tests to get covered.
This is just a brief list of life insurance providers. There are hundreds more. But, many of these other insurance providers will have policies underwritten by the primary life insurance providers: Sanlam, Metropolitan, Momentum, Old Mutual, Hollard, and Discovery.
Life Insurance Companies FAQ’s
what is the most reputable life insurance company?
The life insurance industry is vast and filled with a large number of companies. It can be difficult to determine which company is the most reputable. However, there are a few factors that can help you make this determination.
The first factor to consider is the company’s financial stability. You want to make sure that the company is financially stable and will be able to pay out your claim if something happens. You can check a company’s financial stability by looking at their rating from independent rating agencies.
The second factor to consider is the company’s customer service. You want to make sure that the company is responsive and helpful if you have any questions or need to make a claim. You can read reviews from past customers to get an idea of what their customer service is like.
The third factor to consider is the company’s prices. You don’t want to overpay for life insurance, so you should compare the prices of several companies before making a decision.
Ultimately, the most reputable life insurance company will be the one that is financially stable, has great customer service, and offers fair prices.
what is the best life cover in South Africa?
When it comes to finding the best life cover in South Africa, there are a few things you need to take into account. The first is what type of life cover you need. There are two main types of life cover: term life cover and whole life cover. Term life cover is only for a certain period of time, whereas whole life cover lasts for your entire life. The next thing you need to take into account is how much cover you need. You need to make sure you have enough coverage to provide for your loved ones in the event of your death.
The next thing to consider is the cost of the cover. Different life cover providers charge different premiums, so you need to compare quotes from different providers to find the best deal. Finally, you need to make sure the life cover provider you choose is reliable and trustworthy. There are a few things you can look out for when comparing life cover providers, such as their financial stability and their customer satisfaction ratings.
So, what is the best life cover in South Africa? It really depends on your individual needs and preferences. However, some of the best life cover providers in South Africa include Old Mutual, Momentum and Sanlam. So, be sure to compare quotes from these providers to find the best deal.
How does life insurance work?
The main benefit of life insurance is that it can provide financial security for loved ones in the event of the policyholder’s death. It can also be used to pay off debts or cover other expenses that the policyholder may have. And because life insurance is a tax-advantaged investment, it can be a helpful way to save for retirement.
Can I buy life insurance on someone else?
Yes, you can buy life insurance for someone else. In fact, you can buy life insurance for anyone, including yourself. Purchasing life insurance on another person is called “insuring a third party.”There are a few things you need to know before buying life insurance for someone else. First, the person you are insuring (the “insured”) must be physically and mentally healthy. Second, the insurance company will want to know the reason why you are buying life insurance for someone else. Are you buying life insurance as a gift for a loved one? As a business investment? or To protect your loved ones in case something happens to you?
If you are buying life insurance for someone else for the purpose of protecting your loved ones, the insurance company will want to know how you are related to the insured. If you are not related to the insured, the insurance company may require a higher premium.
What does life insurance cover?
There are many different types of life insurance policies, each with its own specific set of coverages. However, most life insurance policies share a few common coverages.
First, life insurance policies typically cover death benefits. If you die while your policy is in effect, your beneficiaries will receive a payout from the insurance company. The amount of the payout depends on the policy’s death benefit amount and the terms of the policy.
Second, life insurance policies often cover living benefits. These benefits can be used to help cover the costs of long-term care, accelerate the payment of estate taxes, or provide other financial assistance to your beneficiaries.
Third, life insurance policies often cover disability benefits. If you become disabled and are unable to work, your life insurance policy may provide you with a disability benefit to help cover your costs.
Finally, life insurance policies may also cover other events, such as critical illness or accidental death. Speak with your insurance agent to learn more about the specific coverages available in your policy.
What’s the best age to buy life insurance?
There’s no definitive answer when it comes to the best age to buy life insurance. It depends on a number of factors, including your age, health, and life expectancy.
That said, there are some general guidelines to keep in mind. Generally, life insurance is most affordable when you’re young and healthy. The premiums rise as you get older, and they can become prohibitively expensive if you have health issues.
So, when is the best time to buy life insurance? It depends on your individual circumstances, but buying life insurance in your 20s or 30s is generally a good idea. If you wait until you’re older, you may find that the premiums are too expensive or that you’re not eligible for coverage because of your health.