Choosing the right life insurance policy can be a daunting task. With many options available, it is crucial to compare and contrast the benefits, fees, and suitability of each policy to make an informed decision. This article provides a detailed comparison of two prominent life insurance providers in South Africa: 1Life Life Insurance and Absa Bank Life Insurance. By examining their offerings, benefits, requirements, pros and cons, and suitability, we aim to help you determine which policy best meets your needs.
Comparison Table
| Feature | 1Life Life Insurance | Absa Bank Life Insurance |
|---|---|---|
| Coverage | Up to R10 million (Pure Life and Pure Life Plus) | Up to R6 million (Instant Life), R100,000 to R1 million (Ultimate Protector) |
| Premiums | Fixed for the first 12 months | Flexible, adjustable online, with optional 5% annual increase |
| Medical Exams | None required (only HIV swab) | None required |
| Additional Benefits | R50,000 Pay Now death benefit, ForKeeps digital legacy app, grocery benefit, memorial benefit | 20% cash back every 10 years, first three premiums back for Absa Digital Banking customers |
| Waiting Periods | No waiting periods for life cover, 6-month waiting for natural death (Priority Life) | No waiting periods |
| Eligibility | South African residents | South African residents, ages 18-64 |
| Critical Illness Cover | Not explicitly stated | Up to R3 million |
| Terminal Illness Benefit | Pays out full cover amount | Pays cash up to 12 months before death |
| Disability Cover | Not explicitly stated | Up to R4.5 million |
| Repatriation Service | Yes (Pure Life Plus) | No |
| Customer Service | Claims to be South Africa’s #1 Direct Life Insurer | Globally recognized, rated number one in 2021 SA-CSI |
Benefits
1Life Life Insurance
- Pure Life Cover: Offers up to R10 million coverage, with no paperwork or medical exams (only an HIV swab). Immediate underwriting and fixed premiums for the first 12 months. Includes a R50,000 Pay Now death benefit for funeral expenses and access to the ForKeeps digital legacy app.
- Pure Life Plus Cover: Combines life and funeral cover, providing up to R10 million life coverage and R50,000 funeral cover for up to 16 family members. Additional benefits include a R5,000 memorial benefit, R6,000 grocery benefit, and repatriation service. No waiting periods for life cover and fixed premiums for the first 12 months.
- Priority Life Cover: Provides up to R300,000 coverage with no HIV test required. Affordable premiums, e.g., R100,000 cover from R308/month. No medical exams, fixed premiums for the first 12 months, and includes a R25,000 Pay Now death benefit. Immediate cover for accidental death and terminal illness benefit that pays out the full cover amount.
Absa Bank Life Insurance
- Ultimate Protector: Offers life insurance with yearly increasing benefits to keep up with inflation. Covers natural or accidental death and accidental disability. Cover amounts range from R100,000 to R1 million with an annual benefit increase of 5%.
- Instant Life: Simple and affordable life insurance with no waiting periods or medical exams. Covers accidents, natural causes, critical illness, and disability. Flexible premiums that can be adjusted online and cover up to R6 million. Offers 20% cash back every 10 years and the first three life cover premiums back after six months for Absa Transactional Banking customers registered for Digital Banking.
Requirements
1Life Life Insurance
- Eligibility: South African residents
- Medical Exams: None required, only an HIV swab for certain covers
- Application Process: Quick quotes and one-call underwriting
Absa Bank Life Insurance
- Eligibility: South African residents, ages 18-64
- Medical Exams: None required
- Application Process: Easy claim process with online policy management
Pros and Cons
1Life Life Insurance
Pros:
- High coverage amounts (up to R10 million)
- No medical exams required
- Immediate underwriting and fixed premiums for the first 12 months
- Additional benefits such as grocery and memorial benefits, and repatriation service
- Access to the ForKeeps digital legacy app
Cons:
- Higher premiums for higher coverage amounts
- Specific benefits may not be needed by all customers
Absa Bank Life Insurance
Pros:
- Flexible and adjustable premiums
- No medical exams required
- High coverage amounts (up to R6 million)
- 20% cash back every 10 years
- First three life cover premiums back for Absa Digital Banking customers
- Additional critical illness and disability cover
Cons:
- Maximum coverage lower than 1Life (up to R6 million)
- Annual benefit increase option may not be sufficient for inflation
Suitability
1Life Life Insurance
1Life Life Insurance is suitable for individuals seeking high coverage amounts without the hassle of medical exams and paperwork. It is ideal for those who want immediate underwriting and fixed premiums for the first year. The policy is particularly beneficial for families needing combined life and funeral cover with additional benefits like grocery and memorial benefits, and a repatriation service. The digital legacy app adds value for those interested in managing their legacy digitally.
Absa Bank Life Insurance
Absa Bank Life Insurance is suitable for individuals looking for flexible and affordable life insurance with no waiting periods or medical exams. The policy is ideal for those who want the option to adjust their premiums online and benefit from additional coverage for critical illness and disability. The 20% cash back every 10 years and first three premiums back for Absa Digital Banking customers add significant value. The policy’s globally recognized customer service makes it a reliable choice for those seeking comprehensive coverage with added perks.
Other Relevant Comparison Indicators
- Customer Satisfaction: 1Life claims to be South Africa’s #1 Direct Life Insurer, while Absa is rated number one in the 2021 South African Customer Satisfaction Index (SA-CSI).
- Additional Features: 1Life offers the ForKeeps digital legacy app, while Absa provides online policy management and flexible premium adjustments.
- Rewards: Absa offers 20% cash back every 10 years and the first three life cover premiums back for Absa Digital Banking customers.
Conclusion
Both 1Life Life Insurance and Absa Bank Life Insurance offer comprehensive and competitive life insurance policies tailored to meet various needs. 1Life stands out with its high coverage amounts, immediate underwriting, and additional benefits like grocery and memorial benefits, making it a suitable choice for families and individuals seeking extensive coverage without medical exams. Absa, on the other hand, offers flexible premiums, additional critical illness and disability cover, and rewarding features like 20% cash back and first three premiums back, making it an excellent choice for those seeking affordability and flexibility.
Ultimately, the choice between 1Life and Absa will depend on your specific needs, coverage preferences, and desired additional benefits. It is advisable to consult with a financial advisor to determine which policy aligns best with your financial goals and personal circumstances.