The Absa Ultimate Protection Cover is a life insurance plan that offers coverage ranging from R100,000.00 to R1 million.
The premiums for this life cover vary and depend primarily on the underwriting process conducted for the policyholder.
Furthermore, the policy premiums increase by 5% on the policy anniversary to adjust for inflation.
The Absa Ultimate Protection Cover is an entry-level life insurance policy designed primarily for low-income earning South Africans. The maximum sum insured under this policy is R1 million.
This Protection Cover stands out as one of the most cost-effective options due to its low premiums, thanks to the minimum cover amount. In the following sections, we offer a more comprehensive overview of this product.
Absa Ultimate Protection Cover Overview
The Absa Ultimate Protection Cover offers immediate coverage for both natural and accidental death. Natural death can encompass critical illnesses like strokes or heart attacks.
Coverage for death due to natural causes applies when the primary life insured passes away due to such natural circumstances. Upon a successful claim, the plan disburses the coverage amount to the beneficiaries.
Accidental death is also included, with beneficiaries receiving the cover amount if the primary life insured dies in an accident, such as a car accident.
Furthermore, the plan covers accident-related permanent disability. If the primary life insured becomes disabled due to an accident, such as a car crash, the plan provides a payout.
In case of permanent disability from an accident, the plan pays a lump sum directly to the primary life insured, offering financial security during their disability period.
The Absa Ultimate Protection Cover delivers comprehensive life insurance at an affordable price. Acquiring life insurance is straightforward and can be completed via phone or online. For a more detailed explanation of how the plan operates, please refer below.
How the Absa Ultimate Protection Cover Works
To get started with the Absa Ultimate Protection Cover, you can request a call back or apply for the product online. By requesting a call back, an Absa insurance consultant will contact you regarding the product.
As a policyholder, you will need to have a list of beneficiaries for the policy. The list will have to include their personal details and ID number. These beneficiaries will receive a payout in the event of death.
Absa will conduct underwriting before the policy is activated. The product’s underwriting considers age, gender, education level, and other relevant information.
A payable premium will be provided as part of the underwriting process. Since the policy aims to keep up with inflation, the premiums and cover amount will increase year after year.
You must choose a cover amount ranging from R100,000 to R1 million. The cover amount will increase by 5% each year, providing a higher cover amount over time.
Advantages of Absa Ultimate Protection Cover
- The cover accommodates those who want lower life insurance coverage.
- Premiums on the cover are lower compared to those of Absa Instant Life Cover, due to the size of the cover or plan amount.
- The policyholder can choose any beneficiaries to include in the plan.
- The plan’s premiums are very competitive across the life insurance market in South Africa.
- The product comes with an annual cover increase, which helps the policy keep up with inflation.
- The policy can be bought 100% online, with no need to visit an Absa branch to subscribe.
- There are no income requirements or employment requirements, meaning anyone can apply for the product as long as they can afford to pay premiums.
- Cover for accidental disability is also available. The plan covers accidental death.
Disadvantages of Absa Ultimate Protection Cover
- There is no cashback benefit on premiums paid to the plan, as most life insurance products offer cashback after a certain period.
- Policyholders cannot get additional cover for critical illness under the Absa Ultimate Protection cover.
- They will have to take out critical illness cover as a standalone policy.
- There is no funeral benefit where the plan pays a certain amount or percentage of the plan to help beneficiaries cover the cost of the principal life insured’s funeral.
- A separate funeral plan will have to be taken out by the principal life insured.
Absa Ultimate Protection Cover Application
- Applicants must be between the ages of 18 and 65 at the time of application.
- They must be able to provide personal details if applying online or through a call back.
- Applicants must have a valid South African ID book or smart card.
Conclusion
The Absa Ultimate Protection cover provides death and disability coverage at a reasonable premium. The product has some of the best features for a low-cost life insurance policy. However, the cover lacks some of the popular features found in South African life insurance products, such as the cashback benefit.
The Ultimate Protection plan does not include a funeral benefit, which is a disadvantage for life insurance plans in the 2020s. Nonetheless, the plan provides adequate coverage for entry-level life insurance, and the disability benefit is a plus.
