Getting life insurance cover has been a necessity since the start of the 21st century. Today, you need to have life insurance or business insurance to qualify for a number of loans. This shows how important life insurance is and getting one simply shows how responsible you are.
10 Best Life Insurance Cover in South Africa for 2021
|Ranking||Life Insurance Company||Estimated Minimum Premium|
|2||FNB Life Insurance||R300.00|
|6||1 Life Insurance||R150.00|
|8||Liberty Life Insurance||R200.00|
|9||Assupol Life Insurance||R90.00|
|10||Absa Life Insurance||R200.00|
What is Life Insurance?
A life insurance policy is an agreement between an insurance company and a individual in which the individual regularly pays premiums with the expectation that the insurer pays a death benefit to the policy’s beneficiaries when the insured individual dies.
South Africa’s best life insurance companies can help you secure enough coverage to replace your income, settle debts, or cover expenses your family will face, like paying for your children’s education or caring for aging parents.
What is the purpose of life insurance?
Life insurance primarily exists to insure against financial loss in case of death. Life insurance can help your family tremendously when you are no longer around to take care of them. It is a way to say I love you and I have your financial needs covered beyond my reach. Your family and those that you love dearly will have their financial needs taken care of.
But shopping for life insurance covers can be a daunting task considering the number of life insurance providers in South Africa. You will likely ask friends or search on Google to find a better life insurance solution for you and your family. We have done intensive research on life insurance policies in South Africa and have compiled the best 10 life insurance providers from the research.
What you primarily need to ask yourself is why you need life insurance in the first place. The reasons for life insurance are countless thus a number of insurance providers offer flexible life insurance covers. Therefore, these companies are able to cover most common life insurance needs and sometimes those of the policy seeker’s preference.
In Rateweb’s top 10 picks we have made a number of considerations that make choosing life insurance more desirable. Let’s examine the basis of our study and why we had to make such conclusions on our list.
The basis of our list
We have drawn our list on a number of things which are important when taking out a life insurance policy. Our research has been conducted from 23 life insurance providers in South Africa. Our list is based on the following considerations.
- Immediate Payout
- Underwriting leniency
- Add ons
- Conversion feature
We consider all the above listed factors as the main determinants of a great great life insurance cover. Below is our top 10 picks.
Top 10 life insurance picks
Our top 10 picks are however in no particular order. This summary will help you choose the best cover for you based on your needs.
Here is our top 10 life insurance covers in South Africa in 2020:
1. Metropolitan Life Insurance
Metropolitan offers life insurance cover that is synonymous with affordability. Metropolitan Life Insurance is among the cheapest in South Africa and also caters to the poor. Not many life insurers cater for low-income earners but Metropolitan does this so well that you can get a cover of R100,000.00 for low premiums..
Metropolitan also cater to the rich who want to invest millions on their life. You can also add disability and/or critical illness cover to go with your life insurance. So if you need a combination of life products, Metropolitan will have you covered.
2. FNB Life Insurance
Also affordable, FNB life insurance provides affordable life insurance covers to its customers. You can bundle your life insurance, with a critical illness and/or disability cover. Should you want to protect your income, you can also add an income protection cover.
The cover comes with an R30,000 funeral cover benefit that you won’t pay any additional premium for. FNB retains the most loyal customers in the life insurance industry in South Africa. Not only does it have the most loyal customers but also offers the highest customer treatment in South Africa according to SA-CSI.
3. Discovery life insurance
Discovery life offers the most diverse life insurance cover on our list. There is more in offer from Discovery. You can bundle your life insurance with a number of benefits. You can add the usual life insurance bundles such as critical illness, disability, and income protection cover. Discovery life goes a step further to add benefits for child education, estate planning, child protector, and many more benefits.
If you want a lot of benefits that you want to add on your life insurance then Discovery life insurance is for you. Product differentiation is high and if you have one or more Discovery products you will get a discount on premiums.
Momentum Life Insurance offers one of the most lenient underwritings on our list. This life insurance is most popular for making quick payouts on claims. For the 2019 financial year, Momentum life paid out R45 billion on death claims.
Sanlam Life Insurance is the second oldest life insurer on our list only behind Metropolitan. In this case, experience is key. Sanlam has money in place to get things done and is the leading life insurer in Africa in terms of revenue. If you are looking for a stable company then Sanlam is the answer.
Sanlam offers the most flexible life insurance covers on our list. With the Sanlam Premier cover, you can insure your life for any amount above R5 Million.
6. 1life Insurance
1life offers three-tier life insurance covers. These covers are for those with little life cover needs, medium and high life cover needs. You can get a life cover of up to R10 Million from 1 life insurance. On your life insurance, you can make inclusions such as critical illness and disability covers.
7. Old Mutual
Looking for a life insurer that pays out in no time? Old Mutual pays within 48 hours after you make a claim. This turnaround time is the most efficient on our list. Plus when a policyholder passes, cash of up to R50,000.00 is accelerated to make sure that burial arrangements are made.
Liberty Life offers life insurance that is straightforward and can add unlimited beneficiaries to your cover. The life insurance cover is also flexible as the policyholder can adjust their insurance at any time. To this cover, you can add a disability cover, income protection, and serious illness cover.
Assupol Life Insurance comes with lenient underwriting. Moreover, the covers are affordable and target even the low-income earners in South Africa. Monthly premiums start from as little as R90 per month.
You can get a life cover from Absa in minutes. Absa offers fast life insurance solutions. With the Absa Ultimate Protector insurance, you won’t have to do any health checks and you get immediate cover. You can add disability and critical illness cover.
Choosing a life insurance cover requires diligence and taking into account a number of things. The benefits or add ons on your life cover will need to suit the lifestyle of the cover beneficiaries so it is important to jot down what the beneficiaries need and what you desire for them.
In some situations, you can also benefit from your life insurance cover. You can get up to 100% cashback of all your premiums at a certain stage of your policy. Before making drastic decisions make sure you know what you truly need for life insurance.
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