The Absa Instant Life Cover is a life insurance policy that provides cover up to a maximum of R6 million. The cover provides cash back of 20% of the premiums paid every 10 years.
The Absa instant life cover comes with an optional annual cover increase to increase the cover amount annually. Under the Instant Life cover, policyholders get to have their policy increased by 5% annually to keep up with inflation.
Absa transactional account holders who have the Absa mobile app get cash back when they subscribe to the Absa Instant Life cover. These individuals get three of their life cover premiums back after six months of the cover.
The Absa Instant Life cover provides extensive cover, which covers not only death but also critical illness and disability. We discuss these components of the Absa Instant Life cover in detail in the next heading.
Absa Instant Life Cover Benefits
A life cover is mostly known to cover the life of the principal insured and, in some cases, may provide a funeral benefit where it pays out a certain amount in the event of the death of the principal life insured.
The Absa Instant Life Cover provides a more extensive cover by providing a death benefit as well as a disability and critical illness cover through one policy.
The death, disability, and critical illness benefits have a cover maximum. The principal life can get coverage of up to R6 million for death, with the critical illness and disability cover being adjustable.
Below, we cover each benefit of the Absa Instant Life Cover briefly:
Death Benefit
The Absa death benefit provides cover for death due to accident or natural causes. The death cover is activated instantly when taking out the product.
The death benefit comes with a maximum cover of up to R6 million, which is paid to the beneficiaries when the primary insured dies. The product is adjustable, and the policyholder can opt for the policy to increase by 5% annually.
Disability Benefit
The Absa Instant Life Cover comes with a disability benefit that makes a payout should the primary life insured suffer a disability at work. The cover has an influence on the premiums that are payable on the insurance plan, and the higher the cover, the higher the premiums payable.
Disability insurance cover can cover the primary life insured up to a maximum of R4.5 million. The cover can be increased or decreased at any time. Moreover, the cover can be canceled at any time.
Critical Illness Benefit
The Absa Instant Life Cover also comes with a critical illness benefit to cover critical illnesses such as cancer and kidney failure. Critical illness cover can cover the primary life insured up to a maximum of R3 million.
Critical illnesses are covered immediately with no waiting period after taking out the Absa Instant Life Cover. The cover amount is adjustable, allowing policyholders to select the amount of coverage that best suits their lifestyle.
Absa Instant Life Cover provides a cash-out benefit when the policyholder suffers from a terminal illness and is expected to live for less than 12 months. The cash-out benefit pays the full cover amount to the primary life insured.
When taking out the Absa Instant Life Cover, it is important to familiarize yourself with the cover’s exclusions and limitations. By understanding the exclusions, policyholders can avoid acts and behaviors that may result in an unsuccessful claim.
Advantages of Absa Instant Life Cover
Advantages of Absa Instant Life Cover include:
- a cashback benefit every 10 years, access to the Absa mobile app for changing beneficiaries or adjusting the cover amount,
- and coverage for accidental and natural deaths.
- Medical checkups are not required to obtain coverage, and work disability insurance is included in the plan, up to a certain maximum.
- If the policyholder is diagnosed with a terminal illness and is expected to die within 12 months, the plan pays out in full.
- Additionally, Absa transactional account holders registered for digital banking receive three premiums back after six months.
- There is no waiting period for the plan to activate, and it can be applied for fully online.
- The cover amount is adjustable, allowing policyholders to adjust their coverage over time.
Disadvantages of Absa Instant Life Cover
Disadvantages of Absa Instant Life Cover include:
- the fact that only those with a transactional account with Absa Bank and registered for digital banking receive the first three premiums of their coverage back after six months.
- Additionally, the plan does not pay out a certain percentage of the cover amount to cover funeral costs in the event of a policyholder’s death.
Absa Instant Life Cover Application
- To apply for Absa Instant Life Cover, applicants must have a valid South African ID book or smart card,
- be over 18 years old at the time of application, and go through the Absa underwriting process. Applicants can apply for coverage by requesting a call back or by applying online on the Absa website. T
- hey must also have a cover amount in place for life, disability, and critical illness and the names of the beneficiaries, including their personal and contact details.
Conclusion
In conclusion, the Absa Instant Life Cover offers comprehensive life insurance coverage, including disability and critical illness. Absa also gives policyholders 20% of their premiums back on the 10-year anniversary of the plan and every 10 years thereafter. However, the plan does not cover funeral expenses, and an additional funeral cover may be necessary. Overall, this life insurance product is a good option for any South African looking for a comprehensive life insurance policy.
