FNB Accidental Death Plan Review 2023

FNB Accidental Death Plan

The FNB Accidental Death Plan is an accidental death benefit that offers coverage ranging from R200,000.00 to R3 million for accidental death. In the event of the insured’s death, the policy will pay an additional R5,000.00 in cash to cover funeral expenses.

The plan’s monthly premiums start from R65.00 for the primary member. To keep up with inflation, the premiums on the plan increase by 5% each year, as does the cover amount. The plan’s premiums stop increasing on the main policyholder’s 65th birthday.

The accidental death cover can also cover a spouse, with a range of coverage from R100,000.00 to R1.5 million paid if a spouse dies in an accident. Children can also be covered under the plan, with a maximum cover of R10,000.00. Children under the age of 6 can only be covered for up to R5,000.00.

The plan does not cover extended family members such as parents, in-laws, and uncles. However, adopted children, stepchildren, and grandchildren can be included on the plan.

The FNB accidental death plan includes a number of benefits that every family member should have, which are discussed in detail below.

FNB Accidental Death Plan Benefits

The FNB Accidental Death Plan provides a number of benefits to policyholders, including eBucks rewards and a cooling-off period. The following are the FNB Accidental Death Plan Benefits:

No waiting period for accidental death

Accidental death is covered immediately after FNB accepts the cover, and the plan pays 100% of the cover amount.

Budget Assistance

The budget assistance benefit allows policyholders to skip payments for a maximum of four months while still being covered. The policy terminates if the policyholder misses four months and goes 30 days without paying a premium.

The budget assistance allows for only four months of missed payments and collects a maximum of 2 premiums per month until the plan is no longer in arrears. If the plan lapses due to nonpayment, FNB requires the policyholder to authorize them to collect four times their initial premiums to allow future coverage and premium increases.

Cover Increase

The cover amount and premium amount are both increased by 5% on the plan’s anniversary. For example, if you are covered for R1 million and pay a monthly premium of R500, your coverage will be increased to R1,050,000.00, and your premium will be R525.00.

Coverage and premium increases are only accessible to individuals aged 18 to 64. FNB notifies customers of premium increases at least 31 days before the anniversary date of the plan. Alternatively, the policyholder can opt out of having their premiums raised.

Cooling-off Period

The FNB Accidental Death Plan has a two-month cooling-off period. This means that a policyholder can cancel the plan after two months and receive a full refund of their premiums.

A policyholder can still withdraw from the plan after the cooling-off period, but no premiums will be refunded. To make a claim under this benefit, the policyholder must ensure that the end date is less than 2 months.

eBucks Rewards

Policyholders who are eBucks rewards members can earn eBucks rewards through the plan. To earn eBucks on the plan, the policyholder needs to have their premiums up to date and have a qualifying RMB or FNB cheque account from which the premiums are collected.

eBucks rewards are earned on a percentage basis depending on the tier level of the policyholder. The rewards points are paid to the relevant eBucks account.

FNB Accidental Death Plan Options

Individual Option

Cover AmountMonthly Premuum
R200,000.00 R65
R500,000.00 R101
R1,000,000.00R160
R1,500,000.00R216
R2,000,000,00R270
R2,500,000.00R328
R3,000,000.00R381

Family Cover Option

Cover For Main Member Cover For SpouseCover For Children Monthly Premium 
R200,000.00 R100,000.00 R10,000.00 eachR101
R500,000.00 R250,000.00R10,000.00 eachR154
R1,000,000.00R500,000.00R10,000.00 eachR243
R1,500,000.00R750,000.00R10,000.00 eachR329
R2,000,000,00R1,000,000.00 R10,000.00 eachR416
R2,500,000.00R1,250,000.00R10,000.00 eachR505
R3,000,000.00R1,500,000.00R10,000.00 eachR589

Advantages of FNB Accidental Death Plan

  • Premiums can be paused for up to 4 months.
  • The maximum cover amount of up to R3 million is very high.
  • Spouses and children can also be covered on the plan.
  • There is no waiting period for accidental death.
  • Premiums can be adjusted for the cover amount to keep up with inflation.

Disadvantages of FNB Accidental Death Plan

  • The plan doesn’t have a premium waiver benefit for those who are 65 years or older.
  • This benefit is available for most insurance products to protect pensioners from paying premiums.
  • Extended family members cannot be covered under the plan.

FNB Accidental Death Plan Application

  • You must have a transactional account with FNB or RMB.
  • You must be a South African citizen or permanent resident with a valid ID.
  • You must be at least 18 years old, and so must your spouse if you select the Family Plan.
  • For children under the age of 18 who are covered by the Family Plan, you must provide a valid birth certificate.
  • Your biological children, legally adopted children, grandchildren, and stepchildren are all considered children.

Conclusion

The FNB Accidental Death benefit is a great plan to have, as it provides cover of up to R3 million for accidental death. The plan also includes a cooling-off period during which policyholders can get their premiums refunded if they are dissatisfied with the product. Immediate family members such as kids and spouses can also be covered under the plan.

While the product is beneficial to a family, it is important to be aware of the waiting period and plan exclusions. For example, the plan includes an R5,000.00 funeral benefit, but there is a 6-month waiting period for natural death and a 12-month waiting period for suicide.

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