Old Mutual life insurance review 2024

Old Mutual life insurance is a life insurance policy with a cover amount ranging from R100,000 to R3,000,000.00. When life-changing […]

ld Mutual Life Insurance gives you an opportunity to secure your family's financial needs when you are no longer around through its life covers.

Old Mutual life insurance is a life insurance policy with a cover amount ranging from R100,000 to R3,000,000.00. When life-changing events occur, the amount of life insurance coverage can be increased by 25%. Without the need for extensive medicals, Old Mutual life insurance can cover up to R3,000,000.00.

Old Mutual life insurance coverage begins 30 days from the first premium is paid, so policyholders are covered in advance. If a policyholder is diagnosed with a terminal illness and is expected to live for less than a year, Old Mutual can pay out 100% of the life cover.

The premiums on Old Mutual life insurance do not increase for the first 23 months after the policy is issued. The life insurance lump sum pay out is tax-free, so the beneficiaries receive 100% of the cover amount.

A complimentary funeral cover comes with the life cover to make sure that your family has access to burial cash while waiting for your life cover pay out. The funeral cover pays a lump sum within 48 hours of making a claim.

There are a couple of things that you need to understand before taking out a life insurance product, we look at what you need to consider before taking out the FNB Life Insurance below.

What to consider when choosing the Old Mutual Life insurance

As much as life insurance is a subjective matter, you will need to consider asking these questions before taking out the Old Mutual Life insurance.

  • Does your family have enough money for your funeral?
  • Are my debts going to be a burden on my family?
  • Are my children going to be able to go to school if something happens to me?
  • Should I die today, will my family be able to cope with their living expenses?
  • Am I responsible for someone else’s debts and don’t understand how it will affect my estate?
  • Does my family have a funeral cover?

These questions will help you a lot when you are choosing a life insurance policy. You don’t want to be underinsured or have an insurance that doesn’t suit your life insurance needs.

There are a number of expenses that you also need to consider that will in the event of your death. These expenses include but are not limited to:

  • Outstanding taxes.
  • Executor’s fees.
  • Rates and taxes on your property.
  • Conveyancing fees.
  • Master’s fees.
  • Maintenance and accrual claims.
  • Other expenses such as store credit, overdraft etc.

With the questions and expenses in place, you can be able to take a life insurance cover from Old Mutual that is best for you and your family.

There are more questions that you can ask yourself should you want to take a disability cover and/or critical illness cover. However, these will differ with the type of disability or critical illness you will be suffering from.

Let’s look at what the Old Mutual Life cover has in offer for individuals.

Old Mutual Life cover

Old mutual life insurance

The Old Mutual Life cover aims at creating a comfortable life for those that you leave behind. The policy protects and builds your legacy by securing your family’s financial stability once you are no longer there to do it yourself.

Old Mutual Life cover provides a cover of up to R3 Million. The quoting process is fast and easy. The application process is done online and is paperless with a quote sent to you just in 1 minute of processing.

The good thing about the life cover is that the approved claims are paid within 48 hours. This is a very short period in the life insurance arena. When applying for a life cover there are no extensive medical checks so the process is easy, fast and convenient.

Here are the benefits of the Old Mutual Life cover.

Benefits of the Old Mutual Life Cover

  • There is no premium increase for the first 23 months of the policy. Thereafter, there will be a 5% annual increase in premiums.
  • Comes with a free HIV test nationwide. You can choose from a standard HIV blood test or a rapid HIV test.
  • There is no extensive physical medical examination.
  • You can load as many beneficiaries on the policy.
  • The cover amount is flexible according to your cover needs.
  • You can choose a cover amount between R150,000.00 and R3 Million.

Features of the Old Mutual Life Cover

  • Terminal illness cover: you receive a lump sum payment if you get diagnosed with a terminal illness and your life expectancy is less than 12 months.
  • Accelerated funeral benefit: this includes a pay out for funeral arrangements. Old Mutual pays the funeral benefit lump sum in less than 48 hours.
  • Guaranteed insurability: this benefit allows you to increase your cover amount up to 25% if your life change. Life changes include the birth of a child, purchase of house etc.

Disability and Severe illness covers

Disability cover

Old mutual life insurance

With Old Mutual’s disability cover, you can get insurance for any unforeseen disability that you may experience. Every day, 127 South Africans suffer from a permanent disability, and this could be you.

By insuring for disability, you can ensure that your family is taken care of during difficult times. During such times, you and your family will be able to live a financially secure life. The Old Mutual disability insurance will pay out a lump sum or cover income loss.

The lump-sum payment will help with medical expenses and renovating your home to accommodate your current disability. You can also pay off your debts and invest some of your money.

Severe illness cover

Old mutual life insurance

Severe illness cover pays out a lump sum should you suffer from a severe illness. Statistics say that 1 in 7 people are likely to suffer from cancer.

This is a very important statistic and cannot be neglected. The Old Mutual severe illness cover will payout 100% of your cover amount if you get diagnosed with a critical illness.

Severe illnesses include the likes of stroke, heart attacks, cancer and more. The cover will help you face severe illness and will enable you to undergo necessary treatment, afford a private nurse, buy necessary medication and so forth.

Advantages of the Old Mutual Life Insurance 

  • There are different types of life insurance products to choose from. 
  • Premiums of the Old Mutual life cover are competitive. 
  • There is a funeral benefit that is included in the Life cover. 
  • Premiums on the Old Mutual Life cover don’t change for the first 23 months. 
  • Policyholders can decide how cover and premiums will increase. 

Disadvantages of the Old Mutual Life Insurance 

  • The maximum cover amount is R3,000,000.00 which can be low for some individuals. 
  • Policyholders need to pay an extra premium for a cash back benefit. 

Conclusion

Old Mutual Life Insurance division gives standard yet clear and straightforward solutions that aim to benefit the user.

The solutions are affordable and flexible which means that anyone can take a life insurance policy from the company.

The life cover is not for those with much higher financial needs. With the life cover limit at R3 Million, if you have financial needs that stretch beyond R3 Million then this won’t benefit you much.

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