Life Insurance Comparison: Old Mutual Life Insurance vs. Nedbank Life Insurance

Old Mutual Life Insurance, through its Old Mutual Protect Life Cover, offers comprehensive protection for life, disability, and illness. Its […]

Old Mutual Life Insurance, through its Old Mutual Protect Life Cover, offers comprehensive protection for life, disability, and illness. Its wide range of benefit options makes it ideal for people looking for extensive coverage against lifeโ€™s risks. In contrast, Nedbank Life Insurance provides simpler but valuable coverage options with a focus on accidental death, funeral expenses, and unique benefits like grocery vouchers and access to legal services. Both policies are reliable, but their suitability depends on the type of coverage and features youโ€™re looking for.


Key Features Comparison

FeatureOld Mutual Life InsuranceNedbank Life Insurance
Life CoverPays out a tax-free lump sum from R100,000Accidental death cover up to R3 million
Disability CoverLump sum payout up to R30 millionNot covered
Severe Illness CoverCoverage up to R6 millionNot covered
Funeral CoverNot specifically includedFuneral cover up to R75,000
Cashback OptionAvailable every five yearsNot available
Premium WaiverWaives premiums in cases of disability or retrenchmentNot available
Grocery BenefitNot availableUp to R5,000 grocery vouchers for dependents
Critical IllnessCovers major illnesses like heart attack, stroke, cancerExcluded for first 12 months
Waiting Period30 days before coverage startsImmediate coverage for accidental death
Eligibility AgeMust be younger than 79 for Life CoverMust be younger than 64
Loyalty DiscountsNot offeredUp to 10% discount for Nedbank clients
Additional ServicesNoneLegal and trauma counselling, health advice

Benefits of Old Mutual Life Insurance

Old Mutual offers one of the most comprehensive life insurance policies in the market, designed to meet the needs of individuals who want to ensure robust financial protection in various life situations. Key benefits include:

  • Life Cover: Pays out a lump sum amount to beneficiaries upon the policyholder’s death. The amount starts at R100,000, ensuring that dependents are well taken care of.
  • Disability and Functional Impairment Cover: Old Mutual pays a lump sum (up to R30 million) in the case of permanent disability or severe impairment, offering financial relief during tough times.
  • Severe Illness Cover: With coverage up to R6 million, this feature covers severe illnesses like cancer, heart attacks, and strokes.
  • Flexible Add-Ons: Includes coverage for partial impairment, child illness, and premium protection, offering policyholders the option to customize their coverage.
  • Cashback: Old Mutual provides cashback on premiums every five years, rewarding policyholders who maintain long-term coverage.
  • Suicide Exclusion: No payout for suicide within the first two years, ensuring policies remain affordable and sustainable.

Benefits of Nedbank Life Insurance

Nedbank Life Insurance offers a streamlined insurance policy, designed for individuals seeking quick and straightforward coverage with additional services that benefit everyday life. Its standout benefits include:

  • Accidental Death Cover: Pays out up to R3 million, making it suitable for individuals exposed to high-risk environments.
  • Funeral Cover: Coverage up to R75,000, including extended benefits for parents, children, and the spouse of the main member.
  • Grocery Benefit: Provides up to R5,000 for groceries following the accidental or natural death of the policyholder.
  • Legal Services: Offers legal advice, document drafting, and health advisory services as part of its Value for Life program.
  • Loyalty Discounts: Offers automatic and loyalty discounts (up to 10%) to Nedbank clients, making the policy more affordable over time.

Requirements for Each Policy

Old Mutual Life Insurance:

  • Minimum application age: 14 years
  • Maximum entry age: 79 years for Life Cover
  • Maximum entry age for additional covers:
    • Disability Cover: 59 years
    • Functional Impairment: 64 years
    • Severe Illness: 69 years
  • A 30-day waiting period before coverage starts
  • Various health assessments depending on the chosen benefit options

Nedbank Life Insurance:

  • Must be younger than 64 years old to apply
  • Immediate cover for accidental death, but a 6-month waiting period for natural death
  • Must be a South African resident with a valid ID
  • No medical tests required for basic coverage, but certain exclusions apply within the first 12 months (e.g., suicide, critical illness).

Pros and Cons

Old Mutual Life InsuranceNedbank Life Insurance
ProsPros
Comprehensive coverage for life, disability, and illnessSimple, fast application process
High payout amounts (up to R30 million)Affordable, with automatic and loyalty discounts
Flexible cover options for functional impairmentsImmediate accidental death cover
Cashback on premiums every five yearsGrocery and funeral benefits
Premium waiver options in case of disabilityAccess to legal and trauma counseling services
ConsCons
Higher premium costs due to extensive coverageLimited coverage options (no disability or illness cover)
Health assessments requiredLower maximum payouts for non-accidental deaths
No funeral or grocery benefitExclusions for dangerous pursuits and critical illness claims

Who Is Each Policy Best Suited For?

Old Mutual Life Insurance:

This policy is ideal for individuals seeking comprehensive coverage across a wide range of life events, including death, disability, and severe illness. Itโ€™s best suited for those who want peace of mind knowing that they and their families will be financially protected, even in the most severe circumstances. Old Mutualโ€™s flexible add-ons make it a strong option for people with specific needs, such as parents concerned about child impairment or professionals looking for disability coverage.

Nedbank Life Insurance:

Nedbank Life Insurance is designed for those looking for straightforward, cost-effective coverage that offers valuable everyday benefits. Itโ€™s well-suited for individuals focused on accidental death coverage, funeral expenses, and access to additional services like legal advice and trauma counseling. Its grocery benefit and simple claims process make it a good option for families looking for convenience and financial support in the event of sudden death.


Additional Comparison Indicators

  • Affordability: Nedbankโ€™s loyalty discounts and lack of medical tests make it more affordable and accessible for many customers.
  • Coverage Flexibility: Old Mutual provides customizable options with add-ons for severe illness, disability, and physical impairment, while Nedbank focuses more on accidental death and practical benefits like grocery vouchers.
  • Customer Support: Both companies offer support, but Nedbank stands out with its additional services such as legal and trauma counseling, while Old Mutual excels in its detailed customization and cash-back feature.

Conclusion

Choosing between Old Mutual Life Insurance and Nedbank Life Insurance depends largely on your financial needs and priorities. Old Mutual offers comprehensive coverage for those who require extensive protection across various life risks, making it a worthy choice for individuals who value security and flexibility. On the other hand, Nedbank Life Insurance is a more affordable option, with quicker coverage and valuable day-to-day benefits such as grocery vouchers and funeral cover. Each policy has unique strengths, and the best choice will depend on your specific circumstances and coverage requirements.