This comparison looks at the major features, benefits, and terms of both Auto & General and Old Mutual Life Insurance policies. We’ll explore their key benefits, fees, and how they serve different types of individuals. Both companies offer high-value life insurance plans, but the details and structures differ significantly. A table will highlight the major comparisons, followed by a detailed look at the pros, cons, and requirements for each.
Table: Auto & General Life Insurance Vs Old Mutual Life Insurance
| Feature | Auto & General Life Insurance | Old Mutual Life Insurance |
|---|---|---|
| Coverage Amount | R200,000 – R10 million | R100,000 – R30 million |
| Funeral Benefit | R50,000 (paid within 24 hours) | None |
| Terminal Illness Cover | Included in Life Cover | Included in Life Cover |
| Disability Cover | Occupation-based or Event-based | Own Occupation, Child Impairment, etc. |
| Dread Disease Cover | R50,000 to R4 million | R100,000 to R6 million |
| Cashback Benefits | Not available | Premium Cashback every 5 years |
| Medical Exam Requirement | Not required for accidental cover | Required based on the risk profile |
| Minimum Age Limit | 18 years | 14 years |
| Maximum Age for Cover | Based on individual policy terms | Varies (e.g., 79 for Life Cover) |
| Premium Protection | 5 years for Disablement | Premiums waived for retrenchment, etc. |
| Suicide Clause | Not paid within the first 2 years | No payout within the first 2 years |
| Flexibility | Guaranteed Assurability | Premium and cover flexibility options |
Benefits of Auto & General Life Insurance
Auto & General Life Insurance offers a comprehensive range of benefits designed to provide both peace of mind and flexibility. These benefits include:
- Pure Life Cover: A payout between R200,000 and R10 million ensures that your loved ones are financially secure in case of your death. This policy includes a R50,000 funeral benefit, paid within 24 hours of a valid claim.
- Terminal Illness Benefit: Auto & General pays out the full life cover amount if you’re diagnosed with a terminal illness, allowing you to access the funds within your last 12 months of life.
- Guaranteed Assurability: The ability to increase or decrease coverage without further medical exams as your life circumstances change provides essential flexibility.
- Disablement Cover: Whether you become disabled due to injury or illness, Auto & General’s disablement cover provides a lump sum payout. The event-based disablement offers payouts based on the severity of the condition.
- Dread Disease Cover: Covers critical illnesses, including cancer and heart conditions, with payout amounts ranging from R50,000 to R4 million.
Benefits of Old Mutual Life Insurance
Old Mutual Life Insurance is known for offering customizable, high-value life insurance policies. The key benefits include:
- Life Cover: With payouts starting from R100,000, Old Mutual’s life insurance covers accidental and non-accidental death, along with terminal illness cover for individuals with less than 12 months to live.
- Disability Cover: Old Mutual offers comprehensive disability cover, with payout amounts ranging from R100,000 to R30 million, and includes optional benefits such as Own Occupation and Child Impairment Cover.
- Severe Illness Cover: For severe health conditions like cancer and heart attack, Old Mutual offers payouts between R100,000 and R6 million. Additional enhancements, such as the Cancer Enhancer, increase the payout by 25% in severe cases.
- Cashback Feature: One of the standout features of Old Mutual Life Insurance is the cashback benefit, which pays back a portion of premiums every five years.
- Premium Protection: In case of retrenchment, disability, or impairment, Old Mutual waives premiums, ensuring that your policy remains active without you needing to make payments.
Requirements of Auto & General Life Insurance
- Age Limit: Applicants must be at least 18 years old.
- Health Check: No medical exams are required for accidental cover, but health and occupation affect premium costs.
- Suicide Clause: No payout if suicide occurs within the first two years of the policy.
- Flexible Coverage: Policyholders can adjust coverage over time through the Guaranteed Assurability feature.
Requirements of Old Mutual Life Insurance
- Age Limit: Applicants must be at least 14 years old and below 79 years for life cover.
- Health Check: Medical examinations may be required, depending on the chosen cover and individual risk profile.
- Suicide Clause: No payout if suicide occurs within the first two years.
- Flexibility: Old Mutual offers flexible premium and cover patterns to match your changing needs.
Pros and Cons of Auto & General Life Insurance
Pros:
- No medical exams for accidental cover.
- Guaranteed Assurability allows for flexible coverage adjustments.
- Funeral benefit paid within 24 hours.
Cons:
- Limited options for premium cashback.
- Funeral benefit may not be as high as standalone funeral policies.
Pros and Cons of Old Mutual Life Insurance
Pros:
- Premium cashback feature adds financial incentives.
- Comprehensive coverage with a range of optional add-ons.
- Premium protection during retrenchment or disability ensures policy continuation.
Cons:
- Requires medical examination for certain coverage options.
- More expensive premiums due to extensive coverage options.
Who Should Choose Auto & General Life Insurance?
Auto & General Life Insurance is ideal for individuals seeking straightforward life cover with a balance of funeral benefits, disablement cover, and flexibility in policy adjustments. This policy is particularly beneficial for younger adults or those with a lower risk profile, as premiums are calculated based on factors such as age, occupation, and health. With its flexibility in increasing or decreasing cover, it’s a great choice for those whose life circumstances may change over time, such as starting a family or buying a home.
Who Should Choose Old Mutual Life Insurance?
Old Mutual Life Insurance is best suited for individuals looking for comprehensive, high-value coverage. With payout options up to R30 million, this policy is perfect for high-income earners, those with dependents, and individuals concerned about severe illnesses or impairment. The cashback benefit makes it attractive to those who wish to get some returns on their premiums. Old Mutual is also well-suited for those looking for tailored benefits such as cancer-specific coverage or child illness cover.
Additional Comparison Indicators
- Cost Efficiency: While both policies offer substantial cover, Old Mutual’s comprehensive range of benefits and high payout amounts come with higher premiums, making it more suitable for those who can afford a higher monthly outlay. Auto & General, on the other hand, provides significant coverage without as many add-ons, making it a more cost-effective option for many.
- Customization: Old Mutual allows for more customization with its range of add-ons, while Auto & General offers flexibility in coverage adjustments through Guaranteed Assurability.
Conclusion
Both Auto & General Life Insurance and Old Mutual Life Insurance offer robust life insurance policies designed to protect you and your loved ones financially. Auto & General stands out for its flexibility, cost-effectiveness, and straightforward benefits, making it ideal for young professionals or those on a budget. Old Mutual, on the other hand, offers more comprehensive coverage, especially for those with significant financial responsibilities or health concerns, thanks to its extensive add-ons and high payout amounts. Choosing the right policy depends on your financial situation, family needs, and long-term health expectations.