Life insurance is a crucial financial tool for securing your family’s future. South Africa’s top banks—FNB, Standard Bank, Capitec Bank, Nedbank, and Absa—offer competitive life insurance products. This article compares their offerings to help you determine the best option.
FNB Life Insurance
Coverage and Benefits
- Life Cover: Protects and rewards.
- Funeral Benefit: R30,000 paid within 24 hours.
- Spend Protect Benefit: Lump sum payout to cover a portion of FNB/RMB monthly spend.
- Optional Add-ons: Pay Protect, Retrenchment cover, Income Protection, Disability, and Critical Illness cover.
- Rewards: Earn up to 40% back in eBucks on premiums and up to 2,500 points for eBucks rewards each month.
Standard Bank Life Insurance
Coverage and Benefits
- Life Cover: Up to R10 million, tax-free.
- Quick Turnaround: Premium and cover amount confirmed immediately, policy documents issued within days.
- Medical Underwriting: Only requires one blood test, arranged within 90 days.
- Flexibility: Change or add beneficiaries anytime.
- Application: Apply over the phone, increase cover anytime.
Capitec Bank Life Insurance
Coverage and Benefits
- Life Cover: Customizable to suit needs and budget.
- Payout Options: Monthly income for 24 months, lump sum, or a combination.
- Beneficiaries: Nominate up to 6 adult beneficiaries and up to 10 minor beneficiaries.
- Children’s Needs: Funds managed in an umbrella trust until minors turn 21.
Nedbank MyLife Cover
Coverage and Benefits
- Life Cover: Up to R3 million with no waiting period.
- Accidental Death Cover: Up to R3 million.
- Funeral Cover: Up to R75,000.
- Grocery Benefit: Up to R5,000.
- Additional Services: Legal services, medical cover, trauma counselling, and health adviser access.
- Discounts: 5% automatic discount and up to 10% loyalty discounts for Nedbank clients.
Absa Instant Life Cover
Coverage and Benefits
- Life Cover: Up to R6 million.
- Disability and Critical Illness Cover: No waiting periods or medicals required.
- Flexibility: Increase or decrease cover and manage the policy online.
- Cash Back: 20% every 10 years.
- Terminal Illness Benefit: Cash payout up to 12 months before death.
- Optional Annual Benefit Increase: 5% to keep pace with inflation.
Comparison Table
| Feature | FNB | Standard Bank | Capitec Bank | Nedbank | Absa |
|---|---|---|---|---|---|
| Life Cover Amount | Customizable | Up to R10 million | Customizable | Up to R3 million | Up to R6 million |
| Funeral Benefit | R30,000 | Not specified | Customizable | Up to R75,000 | Not specified |
| Accidental Death Cover | Optional | Not specified | Customizable | Up to R3 million | Included |
| Disability Cover | Optional | Optional | Customizable | Included | Up to R4.5 million |
| Critical Illness Cover | Optional | Optional | Customizable | Included | Up to R3 million |
| Waiting Period | None for funeral | None for most | None | None | None |
| Application Process | Online/Branch | Phone | App/Branch | Online | Online |
| Beneficiaries | Flexible | Flexible | Up to 6 adults, | Up to 10 adults | Flexible |
| 10 minors | |||||
| Additional Benefits | eBucks rewards | Flexible cover | Trust for children | Legal services, | 20% cash back |
| medical cover | every 10 years |
Benefits and Pros and Cons
FNB Life Insurance
Pros:
- Comprehensive add-ons.
- Quick funeral benefit payout.
- eBucks rewards.
Cons:
- Add-ons may increase premiums.
Standard Bank Life Insurance
Pros:
- High life cover amount.
- Quick application process.
- Flexible beneficiary options.
Cons:
- Requires blood test.
- Premiums based on individual risk profile.
Capitec Bank Life Insurance
Pros:
- Customizable coverage.
- Multiple payout options.
- Trust for minor beneficiaries.
Cons:
- Minimum allocations required for options.
Nedbank MyLife Cover
Pros:
- No waiting period.
- Wide range of additional services.
- Discounts for Nedbank clients.
Cons:
- Exclusions apply.
- Limited to R3 million life cover.
Absa Instant Life Cover
Pros:
- High life cover amount.
- No waiting periods.
- Cash back and terminal illness benefits.
Cons:
- Terms and conditions apply for benefits.
- Premiums may increase with annual benefit increase.
Conclusion
Choosing the best life insurance cover depends on individual needs and circumstances. FNB offers a comprehensive package with rewards, Standard Bank provides high cover amounts, Capitec offers flexible payout options, Nedbank includes additional services and discounts, and Absa provides high cover with flexible management. Compare these options to find the best fit for your needs.