FNB Life Insurance offers dynamic products, designed to meet the varying needs of its customers. From life cover to funeral benefits and retrenchment cover, FNB provides comprehensive coverage with added benefits like eBucks rewards. Their offering is especially appealing to existing FNB or RMB Private Bank customers due to the easy integration of banking and insurance services.
Old Mutual Life Insurance, on the other hand, has a more traditional approach, offering a broad array of life, disability, impairment, and severe illness cover. Their flexible benefit options allow for customization, making Old Mutual a solid choice for those who need a wide range of coverage.
Below is a comparison of the fees and benefits of each policy:
Fees and Benefits Comparison
| Feature | FNB Life Insurance | Old Mutual Life Insurance |
|---|---|---|
| Life Cover | Up to R100 million | From R100,000 |
| Funeral Benefit | R30,000, paid within 24 hours | Not included |
| Accidental Death | Covered | Covered |
| Disability Cover | Available as an add-on | R100,000 to R30 million |
| Critical Illness | Optional add-on, lump sum payout | Severe illness cover: R100,000 to R6 million |
| Premium Refunds | Up to 40% back in eBucks monthly | Cashback every five years |
| Spend Protect | Lump sum payout to cover a portion of monthly FNB/RMB spend | Not available |
| Income Protection | Covers income in case of disability | Covers premium payments in case of retrenchment, disability, or death |
| Rewards Program | Earn up to 40% back in eBucks | Not available |
| Premium Protection | Available | Premiums waived in case of disability or retrenchment |
| Critical Illness Enhancers | None | Cancer Enhancer and Top-up Benefits |
| Eligibility | FNB/RMB Private Bank customer | At least 14 years old, specific age limits for various benefits |
| Cashback | Not available | Cashback every five years |
| Suicide Exclusion | Not explicitly stated | No payout for suicide within the first two years |
FNB Life Insurance Benefits
- High Coverage: FNB Life Insurance offers up to R100 million in life cover, significantly higher than many competitors.
- Funeral Benefit: The policy includes a R30,000 funeral benefit paid within 24 hours, providing financial relief for immediate needs.
- Spend Protect: Unique to FNB, this benefit offers a lump sum payout to cover a portion of your monthly FNB/RMB spend in the event of death.
- No Medical Tests: FNB’s Accidental Death cover does not require medical tests or questions, simplifying the application process.
- Rewards: FNB Life Insurance stands out for its integration with the eBucks program, offering up to 40% back in rewards.
Requirements for FNB Life Insurance
- Must be an FNB or RMB Private Bank customer.
- Age and income requirements may vary based on the specific policy and add-ons selected.
Old Mutual Life Insurance Benefits
- Customizable Coverage: Old Mutual offers a range of life cover options, from R100,000 to millions, ensuring flexibility for different financial needs.
- Disability and Impairment Cover: Comprehensive coverage is available for disability, functional impairment, and physical impairment, with options to extend benefits.
- Severe Illness Cover: Old Mutual offers a wide range of severe illness cover, including payouts for critical illnesses such as heart attack, stroke, and cancer.
- Premium Protection: In the event of retrenchment, disability, or death, Old Mutual waives the premiums, ensuring your coverage continues uninterrupted.
- Cashback Benefits: Customers receive a percentage of their premiums back every five years, providing long-term value.
Requirements for Old Mutual Life Insurance
- Applicants must be at least 14 years old.
- Specific age limits apply to certain benefits: Younger than 79 for life cover, younger than 59 for disability cover, and younger than 69 for severe illness cover.
- Health assessments may be required for certain levels of coverage.
Pros and Cons of Each Life Insurance Policy
FNB Life Insurance
Pros:
- Generous Life Cover: Up to R100 million in coverage.
- Immediate Funeral Benefit: R30,000 available within 24 hours.
- Rewards Program: Integration with eBucks, earning customers up to 40% back in rewards.
- No Medical Tests for Accidental Death: Simplified application process.
- Multiple Add-Ons: Customize your policy with options like retrenchment cover and income protection.
Cons:
- Eligibility Requirement: Limited to FNB/RMB Private Bank customers, which may exclude some applicants.
- Premiums Can Be Higher: Additional coverage and benefits, like eBucks, may result in higher premiums.
- No Cashback Option: Unlike Old Mutual, FNB does not offer premium refunds over time.
Old Mutual Life Insurance
Pros:
- Customizable Coverage: Multiple levels of life, disability, and impairment cover to suit different financial needs.
- Severe Illness Coverage: Comprehensive protection against major illnesses like cancer, heart attack, and stroke.
- Premium Protection: Premiums are waived in the event of retrenchment, disability, or death.
- Cashback Feature: Refunds a percentage of premiums every five years.
- No Age Limit on Severe Illness Cover: Coverage remains flexible for those under 69 years old.
Cons:
- Lower Maximum Life Cover: Starting at R100,000, the life cover amount may not be as high as FNB’s offerings.
- Medical Assessments: Depending on the coverage, Old Mutual may require medical assessments.
- Suicide Exclusion: No payout for suicide within the first two years of coverage.
Who is Each Policy Suitable For?
FNB Life Insurance
FNB Life Insurance is best suited for:
- FNB or RMB Private Bank customers who want to integrate their life insurance with their banking services.
- Individuals who want high life cover (up to R100 million).
- Those who prefer a rewards-driven policy that gives back through the eBucks program.
- People looking for quick access to funeral funds (R30,000) within 24 hours of claim.
Old Mutual Life Insurance
Old Mutual Life Insurance is ideal for:
- People looking for comprehensive coverage options, including life, disability, impairment, and severe illness.
- Those who want the flexibility to customize their coverage with options like Cancer Enhancer and Critical Illness Top-Up.
- Individuals interested in long-term value through premium cashback every five years.
- People who need severe illness cover that includes extensive protection for major health events.
Other Relevant Comparison Indicators
- Flexibility: FNB’s Dynamic Life Cover adjusts with your home loan, while Old Mutual allows for customization of disability and illness cover, making both flexible in their own ways.
- Financial Strength: Both companies have strong financial backing, with FNB being a part of one of South Africa’s largest banks and Old Mutual having a long-standing reputation in the insurance industry.
- Claim Process: FNB has paid over R600 million in proactive claims since 2018, which speaks to its efficiency in handling claims. Old Mutual’s claim process is supported by standardized definitions, ensuring transparency.
Conclusion
Both FNB Life Insurance and Old Mutual Life Insurance offer robust life insurance solutions, but they cater to different needs. FNB is the better choice for those who prioritize high life cover and integration with their banking rewards program. Old Mutual, with its flexible coverage options and cashback benefits, is ideal for customers seeking comprehensive and customizable protection.
Ultimately, the right choice depends on your individual financial goals, health, and coverage needs. Consider your circumstances and decide which policy offers the most value for you in the long term.