Choosing the right life insurance policy is crucial for financial security. This article compares two prominent life insurance providers in South Africa: 1Life Life Insurance and Old Mutual Life Insurance. Both companies offer comprehensive life insurance products, but they cater to different needs and preferences. This comparison will cover fees, benefits, policy requirements, pros and cons, and who each policy is best suited for.
1Life Life Insurance
1Life offers three main life insurance products:
- Pure Life Cover:
- Coverage up to R10 million.
- No paperwork or medical exams (only an HIV swab).
- Immediate underwriting and fixed premiums for the first 12 months.
- Includes R50,000 Pay Now death benefit for funeral expenses.
- 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.
- Additional benefits include a R5,000 memorial benefit, R6,000 grocery benefit, and repatriation service.
- No waiting periods for life cover.
- Fixed premiums for the first 12 months and no medical exams (only an HIV swab).
- Saves 28% on premiums compared to separate policies.
- Priority Life Cover:
- Coverage up to R300,000.
- 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).
- Terminal illness benefit pays out full cover amount.
Old Mutual Life Insurance
Old Mutual offers the Protect Life Cover, which includes:
- Life Cover:
- Pays a single, tax-free amount (from R100,000) during the chosen term.
- Covers accidental death, non-accidental death, and terminal illness (with less than 12 months to live).
- Coverage starts 30 days before the first premium is due.
- Disability Cover:
- Pays a single amount (from R100,000 to R30 million) if permanently disabled, impaired, or unable to care for oneself due to illness or injury.
- Can be extended with Own Occupation Benefit, Partial Functional Impairment Benefit, and Child Impairment Benefit.
- Functional Impairment Cover:
- Pays a single amount (from R100,000 to R30 million) if permanently impaired or unable to care for oneself due to illness or injury.
- Can be extended with Partial Functional Impairment Benefit and Child Impairment Benefit.
- Physical Impairment Cover:
- Pays a percentage of the cover amount (from R100,000 to R4 million) for permanent physical impairment due to illness or injury.
- Severe Illness Cover:
- Pays a percentage of the cover amount (from R100,000 to R6 million) for severe illnesses like heart attack, cancer, or stroke.
- Cancer Enhancer can boost payout by up to 25% if quality of life is severely impacted by treatment.
- Can be extended with Top-up Benefit, Child Illness Benefit, Mild Illness Benefit, and For Women Benefit.
Comparison Table
| Feature | 1Life Life Insurance | Old Mutual Life Insurance |
|---|---|---|
| Maximum Coverage | R10 million (Pure Life and Pure Life Plus) | R30 million (Disability Cover) |
| Medical Exams | No (only HIV swab) | No for Life Cover |
| Immediate Coverage | Yes | 30 days before the first premium is due |
| Additional Benefits | Funeral cover, memorial and grocery benefits | Disability, functional impairment, severe illness |
| Premium Protection | Fixed premiums for the first 12 months | Waives premiums if disabled, impaired, retrenched, or dies |
| Cashback | Not specified | Pays back a percentage of premiums every five years |
| Age Limits | No specific limits mentioned | Varies by cover type |
| Terminal Illness Benefit | Yes (Priority Life Cover) | Yes |
| Pay Now Death Benefit | Yes (R50,000 for Pure Life, R25,000 for Priority) | Not specified |
| Waiting Period | 6 months for natural death (Priority Life) | 30 days before first premium due |
| Suicide Exclusion | Not specified | No payout for suicide within the first two years |
| Digital Legacy App | Yes (ForKeeps) | Not specified |
Benefits of Each Life Insurance Policy
1Life Life Insurance
- Pure Life Cover:
- High coverage amount up to R10 million.
- Quick and easy application process with no paperwork or medical exams.
- Immediate underwriting ensures fast coverage.
- Fixed premiums provide financial predictability.
- Pure Life Plus Cover:
- Combines life and funeral cover, offering comprehensive protection.
- Additional benefits for memorial, grocery, and repatriation services.
- Cost-effective with savings of 28% on premiums compared to separate policies.
- Priority Life Cover:
- Affordable premiums for significant coverage.
- Immediate cover for accidental death.
- Terminal illness benefit provides financial support during critical times.
Old Mutual Life Insurance
- Life Cover:
- Provides a substantial, tax-free payout for beneficiaries.
- Coverage includes accidental death, non-accidental death, and terminal illness.
- Flexible benefit options tailored to specific needs.
- Disability Cover:
- Extensive coverage for permanent disability.
- Additional benefits for occupation-specific impairment and child impairment.
- Severe Illness Cover:
- Comprehensive protection for severe illnesses.
- Enhancements available to boost payouts for severe impact on quality of life.
Requirements for Each Policy
1Life Life Insurance
- Minimal requirements: No paperwork or medical exams, only an HIV swab.
- Fixed premiums for the first 12 months.
- Immediate underwriting and coverage.
Old Mutual Life Insurance
- Age limits vary by cover type:
- At least 14 years old when applying.
- Younger than 79 for Life Cover.
- Younger than 59 for Disability Cover.
- Younger than 64 for Functional and Physical Impairment Cover.
- Younger than 69 for Severe Illness Cover.
- Coverage starts 30 days before the first premium is due.
Pros and Cons
1Life Life Insurance
Pros:
- High coverage amounts.
- Easy and quick application process.
- Immediate underwriting and coverage.
- Comprehensive funeral and life cover options.
Cons:
- Fixed premiums only for the first 12 months.
- Limited information on premium protection and cashback benefits.
Old Mutual Life Insurance
Pros:
- Extensive range of coverage options.
- Additional benefits for disability, severe illness, and impairment.
- Premium protection ensures continued coverage.
- Cashback feature adds value.
Cons:
- More complex application process with age limits.
- Suicide exclusion within the first two years.
Who Each Policy is Suitable For
1Life Life Insurance
1Life is ideal for individuals seeking:
- High coverage with minimal hassle.
- Quick and straightforward application with immediate underwriting.
- Comprehensive cover combining life and funeral benefits.
- Affordable premiums with immediate accidental death cover.
Old Mutual Life Insurance
Old Mutual suits individuals who need:
- Extensive coverage options tailored to specific needs.
- Additional benefits for disability, severe illness, and impairment.
- Premium protection and cashback benefits.
- Flexibility in choosing premium and cover patterns.
Other Relevant Comparison Indicators
- Customer Service: Consider the quality and accessibility of customer support for both providers.
- Claim Process: Analyze the ease and efficiency of the claims process.
- Reputation: Evaluate the reputation and customer satisfaction ratings of both companies.
- Digital Experience: Assess the digital tools and resources available to policyholders for managing their policies.
Conclusion
Choosing between 1Life Life Insurance and Old Mutual Life Insurance depends on individual needs and preferences. 1Life offers high coverage with minimal hassle and immediate underwriting, making it ideal for those seeking quick and comprehensive protection. Old Mutual, on the other hand, provides extensive coverage options with additional benefits for disability and severe illness, making it suitable for those needing tailored protection with premium protection and cashback benefits. Evaluate your personal needs and financial goals to determine which policy best suits you.