Old Mutual and All Life are two prominent names in the South African life insurance market. While both offer life coverage, they have unique features that cater to different customer needs. Old Mutual offers comprehensive coverage options that extend beyond life insurance to include disability, impairment, and severe illness cover. On the other hand, All Life focuses on pure-risk life insurance without any investment elements, catering to those seeking simple and transparent insurance solutions.
This review will help you understand how these policies compare in terms of payout structure, premiums, benefits, flexibility, and who they are best suited for.
Table Comparing Fees and Benefits
| Features | Old Mutual Life Insurance | All Life Life Insurance |
|---|---|---|
| Coverage Type | Life, Disability, Impairment, Severe Illness | Whole Life, Term Insurance, Loan Protection |
| Payout | Tax-free lump sum from R100,000 | Defined value based on policy type (Whole Life or Term) |
| Premium Options | Level and escalating premiums | Level premiums, no age-related premium increases |
| Policy Term | Until age 79 (Life Cover), age 59 (Disability), age 64 (Impairment) | Whole Life (Indefinite), Term Insurance (10 or 20 years) |
| Additional Benefits | Premium protection, cashback, severe illness coverage | Pure life and disability insurance without savings elements |
| Flexibility | Ability to choose premium and cover patterns | Offers options tailored to loan protection and term insurance |
| Eligibility | Minimum age 14, no cover after age limits | Tailored for individuals of all ages; flexible policies |
| Exclusions | Suicide exclusion for the first 2 years | No age-related premium escalations |
Benefits of Old Mutual Life Insurance
Old Mutual Life Insurance offers several comprehensive benefits that make it an attractive choice for individuals seeking not just life cover but also additional protection for disability, severe illness, and impairments.
- Life Cover: A lump sum payout (from R100,000) in the event of death or terminal illness.
- Disability Cover: Pays up to R30 million for permanent disability, with options to enhance the cover for specific impairments.
- Severe Illness Cover: Payouts up to R6 million for serious illnesses like heart attacks, cancer, or strokes.
- Premium Protection: In case of retrenchment, disability, or death, the premiums are waived while the cover remains intact.
- Cashback: After every five years of continuous premiums, a percentage is returned to the policyholder.
These benefits provide peace of mind knowing that a range of life events, including critical illnesses and permanent impairments, are covered.
Benefits of All Life Life Insurance
All Life’s life insurance is designed with simplicity in mind, focusing purely on providing financial security in the event of death or disability.
- Whole Life Cover: Ensures a payout upon death, no matter when it occurs, as long as the premiums are up to date.
- Term Insurance: Provides life cover for a specified term (10 or 20 years), suitable for people with short to medium-term financial obligations.
- Loan Protection Insurance: A declining payout that covers outstanding loans, making it a perfect option for homeowners or those with business loans.
- No Age-Rated Premiums: This ensures premiums do not increase based on age, making it a cost-effective choice for older individuals.
- Flexibility: Offers multiple policy options to suit different stages of life, ensuring that clients can adjust their coverage based on changing circumstances.
Requirements for Each Life Insurance Policy
Old Mutual Life Insurance:
- Age Requirements: Must be at least 14 years old to apply, and under specific age limits for various cover types (e.g., under 79 for life cover).
- Health Checks: Medical underwriting may be required depending on the policyholder’s age and coverage amount.
- Premium Payment: Premiums must be paid continuously to keep the policy in force. However, premium protection ensures coverage remains in place if the policyholder is unable to pay due to disability or death.
All Life Life Insurance:
- Age Requirements: Flexible with no strict age limit, making it ideal for older individuals who may face challenges obtaining insurance elsewhere.
- Medical Underwriting: All Life is known for providing life insurance to high-risk individuals, such as those with diabetes or HIV, often without requiring medical underwriting.
- Premium Payment: As with Old Mutual, premiums must be up to date to maintain coverage. However, no age-rated premiums ensure affordable options for older individuals.
Pros and Cons of Old Mutual Life Insurance
Pros:
- Comprehensive coverage that includes life, disability, impairment, and severe illness.
- Flexible policy options, allowing customization based on individual needs.
- Premium protection and cashback add value to long-term policyholders.
- High payout options (up to R30 million), suitable for individuals with significant financial obligations.
Cons:
- Higher premiums due to the extensive range of benefits.
- Strict age limits for different types of cover.
- No refund if the policy is canceled.
Pros and Cons of All Life Life Insurance
Pros:
- Simple and transparent life cover options with no savings element.
- Flexible term and whole life insurance options.
- No age-rated premiums, making it an affordable option for older individuals.
- Tailored policies for high-risk individuals without the need for medical underwriting.
Cons:
- No investment or savings component.
- Limited additional benefits compared to Old Mutual (e.g., no severe illness or impairment cover).
- Pure-risk insurance might not appeal to individuals looking for a more comprehensive policy.
Who Are These Policies Best For?
Old Mutual Life Insurance:
This policy is best suited for individuals who want comprehensive coverage and are willing to pay higher premiums for extensive benefits. It’s ideal for those with families or significant financial obligations who require life, disability, impairment, and severe illness coverage. The cashback and premium protection features add further value for long-term policyholders.
All Life Life Insurance:
All Life is a great choice for individuals who need straightforward life insurance without investment features. It is particularly suited for high-risk individuals, including those with chronic health conditions, as well as older policyholders seeking affordable premiums without age-related escalations. The flexibility of term or whole life policies makes it ideal for those with specific financial obligations, such as loans.
Other Comparison Indicators
- Payout Speed: Old Mutual offers quick payouts within 30 days of the policy being active. All Life’s policies are known for prompt payouts as long as premiums are paid up to date.
- Customer Support: Old Mutual has a broader customer service network due to its size and range of products. All Life’s focus on transparency and simple processes makes their customer service more accessible for high-risk clients.
- Customization: Old Mutual offers extensive customization options with add-ons, while All Life provides simpler choices with fewer customization needs.
Conclusion
In conclusion, both Old Mutual and All Life offer excellent life insurance policies, but they cater to different needs. Old Mutual Life Insurance is a comprehensive plan with a wide range of benefits, making it suitable for individuals seeking extensive coverage for various life events. On the other hand, All Life Life Insurance is a straightforward, pure-risk policy that focuses on providing affordable life cover, particularly for high-risk individuals or those seeking minimalistic insurance solutions. Depending on your financial goals, health status, and coverage needs, either of these policies could be a worthy choice.
