Life insurance is a crucial component of financial planning, providing a safety net for your loved ones in the event of your death. In South Africa, two prominent options are 1Life Life Insurance and FNB Life Cover. This article will compare these two policies, examining their fees, benefits, and overall suitability for different types of policyholders. We will provide an in-depth analysis to help you determine which life insurance policy best fits your needs.
Overview
1Life Life Insurance and FNB Life Cover offer comprehensive life insurance solutions with various benefits and coverage options. Both policies aim to provide financial security and peace of mind, but they differ in their approach and specific offerings.
1Life Life Insurance
1Life offers three main products:
- Pure Life Cover: Up to R10 million coverage, no paperwork or medical exams (only HIV swab), immediate underwriting, fixed premiums for the first 12 months, includes R50,000 Pay Now death benefit for funeral expenses, and access to the ForKeeps digital legacy app.
- Pure Life Plus Cover: Combines life and funeral cover, up to R10 million life coverage + R50,000 funeral cover for up to 16 family members, includes R5,000 memorial benefit, R6,000 grocery benefit, and repatriation service, no waiting periods for life cover, fixed premiums for the first 12 months, no medical exams (only HIV swab), and saves 28% on premiums compared to separate policies.
- Priority Life Cover: Up to R300,000 coverage, no HIV test required, affordable premiums (e.g., R100,000 cover from R308/month), no medical exams, fixed premiums for the first 12 months, includes R25,000 Pay Now death benefit, immediate cover for accidental death (6-month waiting period for natural death), and terminal illness benefit pays out the full cover amount.
FNB Life Cover
FNB Life Cover offers several products and benefits:
- Estate Protector: Ensures smooth deceased estate administration.
- Life Cover: Offers up to R100 million life cover, provides up to 40% of premiums back in eBucks monthly, includes R30,000 funeral benefit at no extra cost, paid out within 24 hours, and Spend Protect benefit offers a lump sum payout to cover a portion of your monthly FNB/RMB spend.
- Dynamic Life≫ Home: Life cover that adjusts automatically with your home loan.
- Accidental Death: Eases financial burden after accidental death, no medical questions or tests required.
- Optional Add-Ons: Pay Protect (protects lifestyle and family in case of income loss due to retrenchment or disability), Retrenchment Cover (maintains lifestyle and covers expenses while searching for new employment), Income Protection (protects income in case of disability), Disability (protects against financial impact of permanent or temporary disability), and Critical Illness (pays out a lump sum if diagnosed with a critical illness).
- Rewards: Earn up to 40% back in eBucks on FNB Life Customised or Dynamic Life monthly premiums, FNB Fusion or Current account holders can collect up to 2500 points towards their eBucks reward level each month.
Comparison Table
| Feature | 1Life Pure Life Cover | 1Life Pure Life Plus Cover | 1Life Priority Life Cover | FNB Life Cover |
|---|---|---|---|---|
| Coverage Amount | Up to R10 million | Up to R10 million | Up to R300,000 | Up to R100 million |
| Funeral Benefit | R50,000 | R50,000 + R5,000 memorial | R25,000 | R30,000 |
| Additional Benefits | Digital legacy app | Memorial, grocery, repatriation | None | Spend Protect, eBucks |
| Premiums | Fixed for first 12 months | Fixed for first 12 months | Fixed for first 12 months | 40% back in eBucks |
| Medical Exams | HIV swab only | HIV swab only | None | None |
| Immediate Cover | Yes (after HIV swab) | Yes (after HIV swab) | Yes (accidental death) | Yes |
| Waiting Period for Natural Death | None | None | 6 months | None |
| Terminal Illness Benefit | No | No | Yes | Yes |
| Retrenchment Cover | No | No | No | Optional |
| Income Protection | No | No | No | Optional |
Benefits of Each Life Insurance Policy
1Life Life Insurance
Pure Life Cover
- High coverage up to R10 million.
- No paperwork or medical exams required (only HIV swab).
- Immediate underwriting and fixed premiums for the first 12 months.
- R50,000 Pay Now death benefit for immediate funeral expenses.
- Access to ForKeeps digital legacy app.
Pure Life Plus Cover
- Combines life and funeral cover.
- High coverage up to R10 million plus R50,000 funeral cover for up to 16 family members.
- Additional benefits include R5,000 memorial benefit, R6,000 grocery benefit, and repatriation service.
- No waiting periods for life cover and fixed premiums for the first 12 months.
- No medical exams required (only HIV swab).
- Saves 28% on premiums compared to separate policies.
Priority Life Cover
- Coverage up to R300,000.
- No HIV test required and affordable premiums.
- No medical exams required.
- Fixed premiums for the first 12 months.
- R25,000 Pay Now death benefit.
- Immediate cover for accidental death and terminal illness benefit pays out the full cover amount.
FNB Life Cover
Life Cover
- High coverage up to R100 million.
- Provides up to 40% of premiums back in eBucks monthly.
- R30,000 funeral benefit paid out within 24 hours.
- Spend Protect benefit offers a lump sum payout to cover a portion of your monthly FNB/RMB spend.
- Life cover that adjusts automatically with your home loan.
- Accidental Death cover with no medical questions or tests required.
Optional Add-Ons
- Pay Protect: Protects lifestyle and family in case of income loss due to retrenchment or disability.
- Retrenchment Cover: Maintains lifestyle and covers expenses while searching for new employment.
- Income Protection: Protects income in case of disability.
- Disability: Protects against financial impact of permanent or temporary disability.
- Critical Illness: Pays out a lump sum if diagnosed with a critical illness.
Requirements
1Life Life Insurance
- Minimal medical requirements (only HIV swab).
- Immediate underwriting and cover.
- No waiting periods for life cover.
FNB Life Cover
- Must be an FNB/RMB Private Bank customer.
- No medical questions or tests required for Accidental Death cover.
- Various optional add-ons available.
Pros and Cons
1Life Life Insurance
Pros:
- High coverage amounts.
- No extensive medical exams required.
- Immediate cover and underwriting.
- Various additional benefits and savings on premiums.
- Fixed premiums for the first 12 months.
Cons:
- Lower coverage for Priority Life Cover compared to FNB.
- Less flexibility with add-ons.
FNB Life Cover
Pros:
- Extremely high coverage amounts.
- Rewards in the form of eBucks.
- Quick payout for funeral benefits.
- Various optional add-ons to customize coverage.
- Spend Protect benefit to cover monthly spend.
Cons:
- Must be an FNB/RMB Private Bank customer.
- Potentially higher premiums for extensive coverage.
Suitability Analysis
1Life Life Insurance
1Life Life Insurance is suitable for individuals seeking straightforward and immediate life cover with minimal medical requirements. It is ideal for those who want high coverage amounts without the hassle of medical exams and paperwork. The Pure Life Plus Cover is especially beneficial for families needing combined life and funeral cover.
FNB Life Cover
FNB Life Cover is suitable for FNB/RMB Private Bank customers who want comprehensive coverage with the flexibility of optional add-ons. It is ideal for those who value high coverage amounts and additional benefits like Spend Protect and eBucks rewards. The policy is also beneficial for individuals looking to adjust their life cover in line with their home loan or protect against retrenchment and critical illness.
Other Relevant Comparison Indicators
- Customer Service: Both insurers have robust customer service channels, but FNB’s additional benefits and rewards might appeal to customers looking for more value.
- Claims Process: Both insurers offer quick claims processes, but FNB’s proactive claims payment since 2018 highlights their efficiency.
- Digital Tools: 1Life’s ForKeeps digital legacy app adds a modern touch to their offerings, while FNB’s eBucks rewards provide tangible financial benefits.
Conclusion
Choosing between 1Life Life Insurance and FNB Life Cover depends on your individual needs and priorities. 1Life offers high coverage with minimal medical requirements and immediate benefits, making it suitable for those seeking straightforward life cover. FNB Life Cover, on the other hand, provides extensive coverage with additional benefits and rewards, making it ideal for customers looking for a customizable and rewarding life insurance policy.