Auto & General Life Insurance focuses on providing comprehensive coverage that includes life, disability, and dread disease benefits. The policy offers flexible options with guaranteed assurability, allowing policyholders to adjust their coverage as their circumstances change. It also includes a terminal illness benefit and a funeral benefit that pays out within 24 hours.
FNB Life Insurance, on the other hand, provides robust life cover with additional benefits tailored to customers who bank with FNB. Their life cover offers up to R100 million in coverage, a funeral benefit, and unique features like Spend Protect and dynamic life cover that adjusts with your home loan. FNB also offers cashback through its eBucks rewards program, adding further value to its policyholders.
Below is a detailed comparison of these two life insurance policies, including a breakdown of their benefits, fees, and target audiences.
Comparison Table: Fees and Benefits
| Features | Auto & General Life Insurance | FNB Life Insurance |
|---|---|---|
| Life Cover Amount | R200,000 to R10 million | Up to R100 million |
| Funeral Benefit | R50,000 paid within 24 hours of claim | R30,000 paid within 24 hours |
| Terminal Illness Cover | Full payout if diagnosed with a terminal illness | Included in life cover |
| Disability Cover | Covers up to the full sum assured for disability | Available as an optional add-on |
| Dread Disease Cover | R50,000 to R4 million | Available as an optional add-on |
| Income Protection | N/A | Available as an optional add-on |
| Accidental Death Cover | Available | Included |
| Premium Waiver | 5 years for disability and dread disease cover | Available under Pay Protect |
| Guaranteed Assurability | Included | N/A |
| Cashback/Rewards | None | Up to 40% back in eBucks |
| Premium Calculation | Based on age, gender, occupation, and health | Based on individual risk profile and FNB account |
| Claim Process | Fast payout for funeral benefits and terminal illness | Fast payout for funeral benefits |
| Minimum Cover | R200,000 | No minimum cover limit |
| Retrenchment Cover | N/A | Available as an optional add-on |
Benefits of Auto & General Life Insurance
- Comprehensive Life Cover: Auto & General offers flexible life cover options, from R200,000 to R10 million, allowing policyholders to choose coverage that meets their needs.
- Terminal Illness Benefit: The policy includes a terminal illness payout, allowing beneficiaries to receive the full amount if diagnosed with less than 12 months to live.
- Disability and Dread Disease Cover: Provides coverage for disability and critical illnesses, offering financial support during challenging times.
- Funeral Benefit: A R50,000 payout is available within 24 hours to help with funeral expenses, offering immediate financial relief.
- Guaranteed Assurability: Policyholders can adjust their coverage without medical examinations, ensuring flexibility as their life circumstances change.
- Disablement Premium Waiver: Premiums for life and dread disease cover are waived for up to five years in case of disability.
Benefits of FNB Life Insurance
- High Life Cover Amount: FNB Life offers coverage up to R100 million, making it ideal for those seeking extensive financial protection.
- eBucks Rewards: Policyholders can earn up to 40% cashback on premiums through eBucks, providing an incentive to manage financial products within the FNB ecosystem.
- Dynamic Life Cover: This feature adjusts your life cover in line with your home loan, ensuring sufficient protection as your financial commitments change.
- Spend Protect Benefit: A unique offering that covers a portion of your monthly FNB/RMB spend, easing financial burdens after the policyholder’s death.
- Optional Add-ons: FNB provides additional cover options such as retrenchment, disability, and income protection, allowing customers to tailor their policies to meet their specific needs.
- Quick Funeral Payout: A R30,000 funeral benefit is paid out within 24 hours, helping families with immediate expenses.
Requirements for Each Policy
Auto & General Life Insurance
- Age Requirement: Must be at least 18 years old.
- Medical Exam: Not required for most cover levels, but some exclusions may apply based on individual risk factors.
- Income: No specific income requirement, but premiums are based on risk profile.
- Occupation: Risk factors related to occupation are considered when calculating premiums.
FNB Life Insurance
- Age Requirement: Must be an FNB or RMB Private Bank customer, with specific age ranges depending on the coverage type.
- Medical Exam: Not required for standard cover but may be needed for additional benefits.
- Income: Must hold an FNB/RMB account, with premiums tailored based on account type and risk profile.
- Occupation: Risk profile and occupation are considered when determining the policy’s cost.
Pros and Cons of Auto & General Life Insurance
Pros:
- Flexible Coverage: Guaranteed assurability allows policyholders to adjust their coverage as needed.
- Comprehensive Benefits: Includes disability, dread disease, and terminal illness cover.
- Quick Payout: Funeral and terminal illness benefits are paid out quickly.
Cons:
- No Rewards Program: Lacks the cashback or rewards incentives that FNB offers.
- Premium Waivers: Waivers are limited to five years for specific circumstances.
- Premiums: Premiums may be higher due to the comprehensive nature of the cover.
Pros and Cons of FNB Life Insurance
Pros:
- High Coverage: Offers up to R100 million in life cover.
- eBucks Rewards: Earns cashback on premiums, providing financial incentives.
- Customisable Add-ons: Offers a range of optional covers such as retrenchment, disability, and critical illness.
Cons:
- Exclusive to FNB Customers: You must hold an FNB or RMB Private Bank account to qualify.
- No Guaranteed Assurability: Coverage adjustments may require additional underwriting.
Who Is Each Policy Suitable For?
- Auto & General Life Insurance is ideal for individuals seeking comprehensive coverage, especially those who want flexible options for life, disability, and dread disease cover. It’s suitable for people who value guaranteed assurability, allowing them to adjust their cover over time without needing new medical exams.
- FNB Life Insurance is better suited for FNB/RMB Private Bank customers who want extensive life cover with added rewards like eBucks. It’s an excellent choice for individuals looking to integrate their insurance with their banking services and benefit from customisable add-ons like Spend Protect, income protection, and retrenchment cover.
Other Relevant Comparison Indicators
- Claims Process: Both companies offer a fast payout for funeral benefits. Auto & General provides quick terminal illness payouts, while FNB is known for its seamless claims process, particularly for FNB account holders.
- Additional Perks: FNB Life stands out with its cashback rewards through eBucks, while Auto & General excels in its flexible coverage options.
- Premium Flexibility: Auto & General’s premiums are calculated based on individual risk factors, providing more flexibility, while FNB’s premiums may be more competitive for existing customers who maintain a strong banking relationship.
Conclusion
Both Auto & General Life Insurance and FNB Life Insurance offer unique advantages depending on your needs. Auto & General provides a more flexible and comprehensive life insurance policy that covers life, disability, and dread disease. Its guaranteed assurability ensures you can adjust your coverage over time without new underwriting.
On the other hand, FNB Life Insurance is a strong option for FNB customers who value high life cover amounts, rewards through eBucks, and the ability to customise their policies with add-ons like retrenchment and income protection.