Old Mutual Life Insurance is a long-established player in the insurance sector, offering comprehensive life cover options that cater to various needs such as disability, severe illness, and terminal illness. Their customizable coverage options make it a preferred choice for individuals seeking flexibility and added protection.
On the other hand, King Price Life Insurance has made waves with its innovative approach to life cover. Backed by Stangen, King Price Life focuses on customizable life cover, salary protection, critical illness cover, and commuter cover. Their affordable premiums and broad range of products, including funeral plans and group schemes, make it attractive to a wide audience.
Comparison Table: Old Mutual Life Insurance Vs King Price Life Insurance
| Feature | Old Mutual Life Insurance | King Price Life Insurance |
|---|---|---|
| Provider | Old Mutual | King Price (underwritten by Stangen) |
| Maximum Coverage | Up to R30 million (depending on the benefit chosen) | Up to R10 million for life cover |
| Waiting Period | 30 days before the first premium is due | None |
| Additional Cover Options | Disability, Physical Impairment, Severe Illness, Functional Impairment | Disability, Salary Protection, Critical Illness, Commuter Cover |
| Funeral Cover | No funeral cover in base plan; must be purchased separately | Customizable funeral cover |
| Eligibility Age | 14 years and older | No specified age limits; varies by product |
| Suicide Exclusion | No payout for suicide within the first two years | Not specified |
| Premium Cashback | 5-year cashback benefit | None |
| Disability Cover | Up to R30 million | Lump sum if permanently disabled (no specific amount given) |
| Severe Illness Cover | Up to R6 million | Lump sum for cancer, heart attack, stroke, and surgeries |
| Group Scheme | No | Available; bulk purchase for savings |
Key Benefits of Old Mutual Life Insurance
- Comprehensive Coverage: Old Mutual offers a wide range of cover options, including life cover, disability cover, physical impairment, and severe illness cover. This level of flexibility allows policyholders to tailor their insurance to their unique needs.
- High Maximum Payouts: Old Mutual provides a maximum coverage amount of up to R30 million, which is one of the highest in the industry.
- Premium Protection: If the premium payer becomes disabled, retrenched, or dies, Old Mutual waives premiums, ensuring continued coverage without additional costs.
- Cashback Feature: After every five years of uninterrupted premium payments, Old Mutual returns a percentage of your premiums. This feature adds value to the policy and can act as a reward for long-term commitment.
- Cancer Enhancer: This boosts the payout by up to 25% if treatment severely impacts the policyholder’s quality of life.
Key Benefits of King Price Life Insurance
- Affordable Premiums: King Price Life Insurance is known for its budget-friendly premiums, making it accessible to a wider range of customers without sacrificing quality.
- Customizable Funeral Cover: King Price offers personalized funeral cover that can be adjusted to suit your family’s specific needs and budget.
- No Waiting Period: Unlike many other insurers, King Price has no waiting period, ensuring immediate coverage once your policy is activated.
- Salary Protection: King Price offers salary protection, paying up to 75% of your income (up to R90,000) if you become disabled and cannot work.
- Commuter Cover: This unique product pays out if you die or become disabled in a commuting-related accident. It’s particularly beneficial for those who travel regularly for work or personal reasons.
Policy Requirements
Old Mutual Life Insurance:
- Age Limits: Applicants must be at least 14 years old. The maximum ages vary depending on the cover: under 79 for life cover, under 59 for disability cover, and under 69 for severe illness cover.
- Health Evaluation: Medical underwriting may be required depending on the level of cover chosen.
- Suicide Clause: No payout for suicide within the first two years of the policy.
King Price Life Insurance:
- No Specific Age Limit: Policies do not seem to have strict age requirements but vary based on the product.
- No Waiting Period: Immediate cover upon policy activation.
- Customizable Cover: Various benefits, such as funeral cover and salary protection, can be added based on individual needs.
Pros and Cons
| Feature | Old Mutual Life Insurance | King Price Life Insurance |
|---|---|---|
| Pros | Comprehensive cover with high payout amounts | Affordable premiums with no waiting period |
| Flexible benefit extensions | Customizable funeral and salary protection | |
| Cashback option every 5 years | Commuter cover available | |
| Premium protection for retrenchment and disability | Group schemes for cost savings | |
| Cons | More expensive premiums | Lower maximum coverage (up to R10 million) |
| Longer waiting period (30 days) | No cashback or premium protection features | |
| No funeral cover included in the base policy | Fewer customization options for health-related benefits |
Suitability: Who Should Choose Which Policy?
Old Mutual Life Insurance is ideal for individuals looking for maximum coverage and comprehensive protection. It suits those who prefer a well-established insurance provider and are willing to pay higher premiums for added benefits like cashback and premium protection. The policy also benefits high-income earners, professionals, and those with more complex insurance needs, as it offers coverage options of up to R30 million.
King Price Life Insurance, on the other hand, is suitable for individuals on a tighter budget who still need strong coverage options. The immediate coverage, affordable premiums, and unique offerings like salary and commuter cover make it an excellent choice for younger individuals, commuters, or people with less complex insurance needs. The customizable funeral cover is another draw for families seeking flexibility in their insurance solutions.
Conclusion
Both Old Mutual Life Insurance and King Price Life Insurance have their strengths, with Old Mutual offering more comprehensive and higher-coverage options, while King Price focuses on affordability and innovation.
If you’re seeking maximum protection and additional benefits such as premium protection and cashback, Old Mutual Life Insurance may be the better option. On the other hand, if you’re looking for a cost-effective, no-waiting-period policy with customizable options, King Price Life Insurance is a worthy consideration.
Your choice should be influenced by your financial situation, life stage, and the level of cover required. Comparing their fees, coverage, and additional benefits carefully will help you make the most informed decision for your insurance needs.