Both Old Mutual Life Insurance and Discovery Life Insurance offer a variety of cover options that cater to different financial goals and life stages. While Old Mutual focuses on a range of cover options that include life, disability, and severe illness covers, Discovery enhances its product offerings with a rewards system and additional educational benefits for children.
Old Mutual provides customizable life cover products under the Old Mutual Protect Life Cover, offering flexible options for disability and physical impairment. Discovery, through its Discovery Life Plan, takes a different approach, combining life cover with rewards, premium discounts, and unique global benefits.
Below is a comprehensive comparison of their features, fees, benefits, and other key indicators.
Fees and Benefits Comparison Table
| Feature | Old Mutual Life Insurance | Discovery Life Insurance |
|---|---|---|
| Product Name | Old Mutual Protect Life Cover | Discovery Life Plan (Essential, Classic, Purple) |
| Minimum Monthly Premium | Varies based on cover; starts from R100,000 | Starts from R200 per month |
| Payout for Life Cover | From R100,000, tax-free | Up to R10 million (Classic, Purple Life Plans) |
| Disability Cover | Up to R30 million | Available on all plans |
| Severe Illness Cover | Up to R6 million | Included in all plans, up to market-leading amounts |
| Premium Discounts | None | Up to 48% upfront and ongoing discounts |
| Child Education Protector | Not Available | Available on all plans |
| Cashback/PayBack Option | Cashback every 5 years | Up to 100% cashback (PayBack benefit) |
| Age Limits | 14 to 79 years | Flexible age ranges for different plans |
| Global Benefits | Not Available | Purple Life Plan: Global cover, offshore risk |
| Premium Waiver on Disability/Impairment | Available | Available |
| Online Policy Management | Not available | Full app-based tracking and management |
Key Features and Benefits of Old Mutual Life Insurance
Old Mutual Protect Life Cover offers several key benefits:
- Life Cover: Pays a single, tax-free amount starting from R100,000 in the event of accidental or non-accidental death or terminal illness.
- Disability and Impairment Cover: Provides a lump sum payout if you become permanently disabled, impaired, or unable to care for yourself due to illness or injury.
- Severe Illness Cover: Covers a range of severe illnesses, such as heart attacks, cancer, and strokes, with payout amounts starting from R100,000 up to R6 million.
- Premium Protection: Waives premiums if the policyholder becomes disabled, impaired, retrenched, or dies.
- Cashback Option: Offers the return of a percentage of premiums every five years, helping policyholders recover some of their costs.
- Flexible Add-ons: Additional benefits like child illness and top-up benefits can be added for extra protection.
Key Features and Benefits of Discovery Life Insurance
Discovery’s Life Plan sets itself apart with added value and comprehensive global coverage:
- Comprehensive Cover: Available for death, disability, severe illness, loss of income, and child and spouse benefits, covering all essential risks.
- Premium Discounts: Policyholders can receive up to 48% in premium discounts, along with up to 7.5% of their premiums back in the form of Discovery Miles.
- Global Education Protector: Ensures your child’s education, from early childhood to tertiary level, is covered in case of death, disability, or severe illness.
- PayBack Benefit: Policyholders can receive up to 100% of their premiums back through this benefit, making it an attractive long-term option.
- Cash Conversion: Offers the ability to convert up to 100% of the Life Fund value to cash at age 65 without reducing cover.
- Dollar Life Plan: Provides international risk protection with payouts in US dollars and the option to lock in a favorable dollar-rand exchange rate.
Requirements for Each Policy
Old Mutual Life Insurance Requirements
To qualify for Old Mutual Protect Life Cover, you must:
- Be at least 14 years old to apply for life cover, with a maximum age of 79 years.
- Be younger than 59 for Disability Cover and younger than 69 for Severe Illness Cover.
- Complete a medical examination if required, depending on your coverage amount and health condition.
Discovery Life Insurance Requirements
For the Discovery Life Plan, the requirements include:
- A minimum monthly premium starting at R200, depending on the specific plan chosen.
- No medical exams are required for lower cover amounts, but high-net-worth policies like the Purple Life Plan may require more detailed underwriting.
- Age limits are flexible, with Purple Life Plan requiring a minimum life cover amount of R10 million.
Pros and Cons of Old Mutual Life Insurance
Pros:
- Customizable Cover: Offers a wide range of optional benefits that can be tailored to your specific needs.
- Premium Protection: Protects policyholders from paying premiums if they become disabled or retrenched.
- Cashback Option: Provides a return on premiums every five years.
- High Coverage Limits: Disability and severe illness cover can be extended up to R30 million.
Cons:
- Limited Global Benefits: No international cover or offshore benefits.
- No Premium Discounts: Does not offer upfront or ongoing premium discounts like Discovery.
Pros and Cons of Discovery Life Insurance
Pros:
- Premium Discounts: Offers up to 48% upfront and ongoing premium discounts.
- Comprehensive Rewards System: Discovery Miles and PayBack benefit add long-term value to the policy.
- Global Benefits: Offers global cover, offshore risk protection, and payouts in US dollars for Purple Life Plan.
- Child Education Protection: Ensures children’s education in case of the policyholder’s death or disability.
Cons:
- Higher Premiums for High-Net-Worth Plans: Purple Life Plan requires a minimum of R10 million life cover, which could be expensive for some.
- Complexity: The policy structure, including various benefits and rewards, may be more complex to navigate.
Who Each Policy is Suitable For
Old Mutual Life Insurance
This policy is ideal for individuals looking for a comprehensive life insurance policy with the flexibility to customize additional cover for disability, severe illness, and physical impairment. It is especially beneficial for those who prefer a straightforward policy without the need for global or reward-based benefits.
Discovery Life Insurance
Discovery’s Life Plan is more suited for those who value additional rewards, such as premium discounts and cashback options, along with extensive global protection. High-net-worth individuals may prefer the Purple Life Plan due to its bespoke coverage, including the Dollar Life Plan for offshore risk protection.
Additional Comparison Indicators
- Rewards System: Discovery Life offers a sophisticated rewards system with discounts, Discovery Miles, and cashback, while Old Mutual focuses on straightforward, reliable coverage.
- Global Reach: Discovery provides extensive global cover, making it a superior choice for individuals seeking international protection.
- Family Benefits: Discovery includes child and spouse benefits, along with a child education protector, which Old Mutual does not offer.
Conclusion
Both Old Mutual Life Insurance and Discovery Life Insurance offer strong life insurance options with various benefits. Old Mutual focuses on customizable life, disability, and severe illness cover, making it a great choice for individuals seeking comprehensive protection with flexibility. In contrast, Discovery’s innovative rewards system and global benefits make it ideal for those seeking both financial protection and added value through discounts, cashback, and international coverage.
Choosing between these policies depends on your personal financial goals, lifestyle, and insurance needs. For those who prioritize rewards and global cover, Discovery Life Insurance is the best choice. However, if you seek straightforward coverage with strong disability and severe illness options, Old Mutual Life Insurance will serve you well.