Old Mutual and Standard Bank offer life insurance policies with unique strengths tailored to specific needs. Old Mutual’s product, Old Mutual Protect Life Cover, provides comprehensive coverage that includes options for severe illness, disability, and functional impairment. Standard Bank Life Insurance, underwritten by Liberty Group, focuses on ease of application, flexibility, and a streamlined process requiring minimal medical examination.
To thoroughly understand each policy, let’s dive into a comparison of their key features, benefits, fees, and other critical factors.
Comparison Table: Old Mutual Life Insurance Vs Standard Bank Life Insurance
| Feature | Old Mutual Life Insurance | Standard Bank Life Insurance |
|---|---|---|
| Payout | Single, tax-free amount (from R100,000) | Up to R10 million, tax-free |
| Coverage | Accidental death, non-accidental death, terminal illness | Death, serious illness, salary protection, disability cover |
| Medical Examination | Full medicals may be required | Only a quick blood test |
| Additional Benefits | Disability Cover, Impairment Cover, Severe Illness Cover | Flexibility to change/add beneficiaries, increase cover |
| Premium Protection | Waives premiums if payer becomes disabled, retrenched, or dies | Premium determined based on risk profile |
| Cashback Feature | Cashback every five years | Not available |
| Minimum Age | 14 years | Not explicitly stated |
| Maximum Coverage Age | Under 79 years for Life Cover | Varies based on individual risk profile |
| Flexibility | Customize premium and coverage patterns | Can adjust beneficiaries and cover limits |
| Exclusions | Suicide in first two years, intentional self-harm | Self-inflicted injuries, war-like activities, illegal acts |
Benefits of Old Mutual Life Insurance
1. Comprehensive Coverage: Old Mutual Life Insurance provides a wide range of coverage options, including accidental and non-accidental death, terminal illness, disability, and impairment. This makes it suitable for individuals seeking a holistic approach to life insurance.
2. Customizable Features: Old Mutual offers optional extensions such as the Own Occupation Benefit and Child Impairment Benefit. This level of customization ensures that policyholders can tailor their coverage to their specific needs.
3. Severe Illness Cover: Policyholders can extend their life insurance to cover severe illnesses, including heart attack, cancer, and stroke. Additionally, the Cancer Enhancer benefit can increase payouts by up to 25% in case of a significant impact on life quality due to treatment.
4. Premium Protection: This feature ensures that if the premium payer becomes disabled, retrenched, or dies, the policy remains in effect, and premiums are waived.
5. Cashback: Old Mutual pays back a percentage of premiums every five years, providing a financial incentive for long-term policyholders.
Benefits of Standard Bank Life Insurance
1. Convenience and Speed: Standard Bank Life Insurance is designed for simplicity. With a quick application process and no need for extensive medicals (just a blood test), this policy appeals to those seeking an efficient experience.
2. Flexibility: Policyholders can easily update their beneficiaries or increase their coverage. This flexibility ensures that the policy can evolve as life circumstances change.
3. High Coverage Limit: Standard Bank provides up to R10 million in life cover, tax-free, making it ideal for individuals seeking high protection.
4. Personalized Premiums: Premium amounts are tailored to the individual’s risk profile, ensuring that each person pays according to their unique situation.
5. Nurses on Wheels: The blood test required for the policy is conducted at the policyholder’s preferred location, making the process even more convenient.
Requirements for Each Life Insurance Policy
Old Mutual Life Insurance:
- Applicants must be at least 14 years old.
- Life cover is available until age 79.
- Additional benefits have age restrictions: under 59 for Disability Cover, under 64 for Functional and Physical Impairment Cover, and under 69 for Severe Illness Cover.
- No payout is made for suicide within the first two years of coverage.
Standard Bank Life Insurance:
- No minimum age was explicitly mentioned.
- Life cover and premium amounts are determined based on individual risk profiles.
- A quick blood test is required within 90 days of policy purchase.
- Exclusions include self-inflicted injuries, war-like activities, and breaking the law.
Pros and Cons of Old Mutual Life Insurance
Pros:
- Comprehensive coverage, including disability, impairment, and severe illness options.
- Flexible customization options with various benefit extensions.
- Premium protection and cashback rewards every five years.
Cons:
- Full medical examinations may be required, which could delay the application process.
- No refunds on cancellation.
- Higher complexity with numerous optional benefits may overwhelm some policyholders.
Pros and Cons of Standard Bank Life Insurance
Pros:
- Simple and fast application process, with only a blood test required.
- High flexibility in terms of coverage and beneficiary changes.
- Personalized premiums based on risk profile.
Cons:
- Fewer customization options compared to Old Mutual.
- Does not offer a cashback benefit.
- Limited in terms of additional severe illness or disability coverage.
Who is Each Policy Suitable For?
Old Mutual Life Insurance is suitable for individuals or families looking for comprehensive coverage with the flexibility to add multiple benefits. It’s ideal for those with specific concerns about disability, impairment, or severe illnesses and those who value the added financial reward of a cashback feature. It’s also an excellent choice for individuals seeking a higher level of customization and long-term coverage stability.
Standard Bank Life Insurance is perfect for individuals who prioritize convenience and simplicity. Its quick application process, minimal medical requirements, and high coverage limits make it suitable for people looking for fast yet reliable life insurance without the need for complex customization. This policy is well-suited for individuals who prefer flexibility in adjusting their cover and beneficiaries over time.
Other Relevant Comparison Indicators
Claims Process: Old Mutual uses standardized critical illness definitions, which can offer more clarity during the claims process. On the other hand, Standard Bank’s partnership with Liberty Group ensures a streamlined and reliable claims experience, but the exclusions may complicate certain situations.
Premiums and Costs: Both policies offer flexibility in premium determination, though Old Mutual tends to cater to a wider range of health conditions with potentially higher premiums. Standard Bank focuses on individual risk profiles, which could lead to more tailored and potentially lower premiums depending on the person’s health and risk factors.
Conclusion
In conclusion, Old Mutual Life Insurance and Standard Bank Life Insurance cater to different types of consumers. Old Mutual’s product stands out for its comprehensive coverage and flexibility, making it ideal for those who seek a tailored and all-inclusive policy. In contrast, Standard Bank Life Insurance offers simplicity, speed, and flexibility, perfect for individuals looking for straightforward protection with the ability to adjust their policy as needed. Depending on your personal preferences and financial needs, either policy can offer valuable protection for your future.