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2023-03-02 6:30 AM

Momentum Life Insurance Review 2023

By Lethabo Ntsoane

Momentum life insurance is a life insurance policy with premiums starting at R150.00. The Momentum Life Insurance offers monthly premium savings of up to 35% through the Momentum rewards program. Momentum life insurance covers individuals from R100,000 to R5,000,000.00.

For many South Africans, momentum life insurance has been critical in terms of leaving a legacy to their family. Many South Africans are achieving their life goals as a result of Momentum’s life insurance policy. 

As of  2019, Momentum’s life insurance division has paid out more than R4 billion in claims. This demonstrates how Momentum prioritizes its clients. The following are the highest single payouts in four categories of life insurance:

  • R45,059,793.00 for a death claim.
  • R62,410,413.00 for disability claim.
  • R6,381,408 for critical illness claim.
  • R2,192,097 for income protection claim.

Payouts will continue to rise in the coming years, according to the company’s projections. Claims are processed quickly because they can be handled over the phone on weekdays during business hours. Financial consultants assist you when you choose Momentum life insurance. 

These consultants will help you choose the right amount of life insurance for you and your family. Advisors will take into account the number of dependents, your income, household needs, and any other factors influencing your decision to purchase life insurance. 

Choosing a life insurance policy is not an easy task, and few people are aware of the advantages that life insurance provides. As a result, consulting an advisor before purchasing Momentum life insurance is strongly advised.

We discuss the Momentum Life Insurance policies in detail below.

Momentum Life Insurance Policies

Momentum offers 3 types of policies for life insurance. The policies are direct and straightforward and are not complicated. Plans depend on your life insurance goals. The Momentum life insurance policies vary based on four critical aspects of life, disability, critical and income protection covers.

Life insurance policies from Momentum include essential, extended and comprehensive plans. To get a quote you can click here. Let us examine all the three life insurance policies from Momentum.

Essential Plan

The Momentum Essential plan has the least benefits of all the three plans that Momentum offers. This life insurance cover is mainly for young individuals particularly the youth with fewer insurance needs.

The Essential plan doesn’t cover critical illnesses so that is why it is best for young men and women because they are not so much at risk than the middle-aged or the elderly. Also, the cover doesn’t cover income protection, meaning should a policyholder lose their job then they can’t make any claim.

What the Essential Plan covers:

  • The Momentum Essential plan covers disability. Disability cover pays out should a policyholder become disable. Disabilities can be as a result of a car accident, work-related etc.
  • Essential Plan also covers life. This is just like any other life cover that pays out should the policy owner die. Payout varies depending on the amount of cover the policyholder has with Momentum.

As you can see the Essential Plan cover only two areas of life, life and disability and none other. It surely has its own limitations but can serve those with critical cover from another insurance company. Also, it is cost-saving as the holder pays less in premium payments than any other life insurance plans from Momentum.

Extended Plan

The Momentum Extended Plan is better than the Essential plan and offers extended cover on one other item. Extended Plan offers critical illness cover, unlike the Essential plan. At least this cover puts you ahead as it covers 3 basic insurance needs in your life.

You may need this cover if your financial needs are covered. That is if your income is guaranteed that it won’t be interrupted during your policy’s lifetime. The biggest drawback of the Extended Plan is that it doesn’t cover income.

You have more to benefit from the Extended Plan than the Comprehensive Plan if you earn your income from annuities or have guaranteed savings.

Let’s look at what you get from choosing the Momentum Extended Plan:

  • Life Cover- you get a life cover with Extended Plan to assure that your family has all the financial supply that they need should anything happen to you.
  • Disability cover – if you face a disability, you get a lump sum payout that will help you during tough times.
  • Critical illness cover – Momentum covers a number of critical illnesses such as stroke, cancer etc, if you become critically ill because of any critical illness covered by the insurance company, you get a lump sum payout. This is to help pay medical bills and living expenses during the days of such a critical illness.

Comprehensive Plan

This is an all in one life insurance policy that covers all available covers for life insurance at Momentum. Comprehensive Plan is better than both the Essential and Extended Plan as it offers some of the covers that both plans don’t offer.

The Comprehensive plan comes at a higher cost as well so be prepared to pay more when you take the Comprehensive plan. If you can afford to take the Comprehensive plan it is really worthwhile. You will be able to live knowing that all aspects of your life insurance needs are taken care of.

Here is what the Comprehensive Plan cover you for:

  • Life Cover – pays out a lump sum upon the death of the policyholder to the beneficiaries.
  • Disability cover – pays out a lump sum to the policyholder should they face disability.
  • Critical illness Cover – should a policyholder become critically ill, the policyholder will receive a lump sum from Momentum.
  • Income Protection Cover – this cover protects the livelihood of the policyholder should they lose their flow of income. At a time of retrenchment, the policyholder will receive money to cover their living and other expenses from Momentum.

Note that claim amounts are subject to the amount of the plan cover.

Advantages of Momentum Life Insurance

  • There is a discount on monthly payable premiums.
  • There are 3 plans to choose from.
  • Anyone can apply for Momentum life insurance.
  • Claims can be submitted online.
  • The Momentum life insurance can be bought online.
  • Premiums are low.
  • Disability cover is available on all life insurance offerings.

Disadvantages of Momentum Life Insurance

  • There is no funeral benefit from the life insurance offerings.

Conclusion

Momentum Life Insurance provides life insurance policies that favour different types of income earners. Also, offering needs-based life insurance covers allowing customers to pay for what they truly need.

Just like any other life insurance cover the less you pay the less are your benefits, vice-versa with those who pay high premiums. So the Momentum life insurance policies are progressively relative to the premiums policyholders pay.

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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted: Email: lethabo@rateweb.co.za Twitter: @NtsoaneLethabo

Tags: Momentum