OUTsurance and Hollard are both well-established insurance companies in South Africa, known for their innovative products and customer-centric approaches. OUTsurance is renowned for its OUTbonus feature, which rewards policyholders who remain claim-free, while Hollard offers flexible life insurance solutions that cater to a variety of needs, including no-medical cover options.
In this comparison, we will explore the key features of each policy, including their coverage options, benefits, exclusions, and suitability for different individuals. Additionally, a table will be provided to compare the fees and benefits of the two life insurance policies, making it easier for you to evaluate which one offers the most value.
Comparison Table: OUTsurance Life Insurance vs. Hollard Life Insurance
| Feature | OUTsurance Life Insurance | Hollard Life Insurance |
|---|---|---|
| Coverage | Death, Accidental Death, Comprehensive Death, Disability, Critical Illness | Life, Disability, Critical Illness |
| Maximum Coverage Amount | Up to R1 million (terminal illness benefit) | Up to R1.2 million (no-medical cover) |
| Optional Benefits | Education, Funeral Cover | Final expense benefit, Repatriation, Cashback |
| Premium Structure | Level or Increasing | Flexible with annual increase options |
| Premium Cashback | OUTbonus (cash refund for claim-free customers) | 20% premium cashback after 5 years |
| Medical Examination | Required for certain covers | No medical tests required (Hollard Life Select) |
| Exclusions | Suicide, Drug Use, War, Terrorism | Terms and conditions apply (contact for details) |
| Terminal Illness Benefit | 50% of the sum assured (up to R1 million) | Included (accelerator) |
| Critical Illness Coverage | Core (27 illnesses) or Comprehensive (40 illnesses) | Included with no-medical options |
| Disability Coverage | “Own Occupation” or “Own or Suitable Occupation” | Customizable |
| Policyholder Requirements | Must provide accurate information and pay premiums on time | South Africans aged 18-65 (Specialist Cover), 19-64 (no-medicals) |
Benefits of OUTsurance Life Insurance
- Comprehensive Coverage: OUTsurance offers a wide range of coverage options, including death, accidental death, comprehensive death, disability, and critical illness. This ensures that you are protected against a variety of risks.
- OUTbonus: One of the standout features of OUTsurance is the OUTbonus, which rewards policyholders with a cash refund of premiums if they remain claim-free for a specified period. This unique benefit can provide significant savings over the long term.
- Customizable Premiums and Coverage: OUTsurance allows policyholders to choose between level or increasing premiums, as well as level or increasing sums assured. This flexibility ensures that the policy can be tailored to meet individual financial needs.
- Education and Funeral Benefits: The optional education benefit provides financial support for children’s education in the event of the policyholder’s death, while the funeral cover offers assistance with funeral expenses, ensuring that loved ones are not burdened with these costs.
- Critical Illness and Disability Options: OUTsurance offers both core and comprehensive critical illness coverage, as well as two disability coverage options (“Own Occupation” and “Own or Suitable Occupation”). These options provide peace of mind by covering a wide range of potential risks.
Benefits of Hollard Life Insurance
- No-Medical Cover Options: Hollard’s Life Select policy offers life cover without the need for medical tests, making it accessible to a broader range of individuals, including those with pre-existing conditions.
- Premium Cashback: Hollard provides a 20% premium cashback option after five years, rewarding policyholders for their loyalty and reducing the overall cost of insurance.
- Final Expense Benefit: Hollard includes a final expense benefit of up to R10,000 for up to four children, as well as a R30,000 final expense benefit for the policyholder and partner, helping to cover immediate expenses after a death.
- Customizable Coverage: With the Specialist Life Cover option, policyholders can customize their life cover to suit their specific needs, including the ability to choose between lump sum or monthly assistance payouts.
- Comprehensive All-in-One Solution: Hollard My Life & More combines life cover, funeral cover, and home contents insurance into one policy, simplifying insurance management and providing extensive coverage under a single plan.
Requirements for Each Life Insurance Policy
- OUTsurance Life Insurance:
- Policyholders must provide accurate personal and medical information.
- Premiums must be paid on time to keep the policy active.
- Coverage may be affected by non-disclosure or misrepresentation.
- Specific exclusions apply, such as suicide within the first 24 months, drug use, and criminal activities.
- Hollard Life Insurance:
- Eligibility requirements vary by policy type, with age restrictions typically between 18-65 years.
- Some policies do not require medical exams, making them accessible to a broader audience.
- Policyholders must adhere to the terms and conditions outlined in the policy documents.
- Exclusions and conditions apply, such as the need for regular premium payments and accurate information disclosure.
Pros and Cons of Each Life Insurance Policy
OUTsurance Life Insurance
Pros:
- Comprehensive coverage options with multiple add-ons.
- OUTbonus provides financial rewards for staying claim-free.
- Flexible premium and coverage structure.
- Includes specific disability and critical illness options.
Cons:
- Medical examination may be required for certain covers.
- Some exclusions may limit coverage, such as suicide within the first 24 months.
- Premiums may be higher for more extensive coverage options.
Hollard Life Insurance
Pros:
- No-medical cover options make it accessible to more individuals.
- Premium cashback rewards for long-term policyholders.
- Final expense benefits provide immediate financial support after death.
- All-in-one solution simplifies insurance management.
Cons:
- Coverage amounts may be lower than some competitors.
- Limited customization options compared to OUTsurance.
- Exclusions and conditions apply, which may affect coverage.
Who Each Policy is Suitable For
- OUTsurance Life Insurance: This policy is ideal for individuals seeking comprehensive coverage with the flexibility to customize their premiums and sums assured. It is especially suitable for those who want to combine multiple types of coverage (e.g., death, disability, critical illness) under one policy. The OUTbonus feature makes it a great choice for those who are confident in maintaining a claim-free status, as it offers significant financial rewards.
- Hollard Life Insurance: Hollard’s no-medical cover options make it a suitable choice for individuals who may not qualify for traditional life insurance due to health concerns. The cashback rewards and final expense benefits make it an attractive option for those looking for financial benefits beyond just coverage. Additionally, the all-in-one solution offered by Hollard My Life & More is ideal for individuals seeking a comprehensive policy that covers life, funeral, and home contents insurance.
Additional Comparison Indicators
- Customer Service: Both OUTsurance and Hollard are known for their customer-centric approaches. However, OUTsurance’s OUTbonus feature indicates a higher focus on rewarding loyal customers, while Hollard’s simplicity and transparency in policy terms make it easier for policyholders to understand their coverage.
- Claims Process: OUTsurance’s claims process is rigorous, requiring medical and circumstantial evidence. Hollard, on the other hand, offers policies with no-medical requirements, potentially simplifying the claims process for certain policies.
Conclusion
Choosing between OUTsurance Life Insurance and Hollard Life Insurance depends on your specific needs and circumstances. OUTsurance is the better choice for those seeking comprehensive and customizable coverage, especially if you’re looking for a policy that rewards loyalty through the OUTbonus feature. On the other hand, Hollard’s no-medical cover options, cashback rewards, and final expense benefits make it a strong contender for individuals who prefer simplicity and accessibility in their life insurance.
Both companies offer reliable and robust life insurance products, and your choice should be guided by your individual needs, health status, and financial goals. Consider consulting with a financial advisor to ensure that you choose the policy that best aligns with your long-term financial planning objectives.