Choosing the right life insurance policy is crucial for safeguarding your family’s financial future. In this comprehensive comparison, we will examine two popular life insurance providers in South Africa: 1Life Life Insurance and OUTsurance Life Insurance. This article will provide an overview of each policy, compare their fees and benefits in a table, list the benefits and requirements of each policy, analyze their pros and cons, and discuss which policy may be suitable for different types of consumers.
Overview of 1Life Life Insurance
1Life Life Insurance offers three main products: Pure Life Cover, Pure Life Plus Cover, and Priority Life Cover. Each of these products caters to different needs and preferences, providing a range of coverage options without the need for extensive medical examinations.
1Life Life Insurance 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
- 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
- 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)
- 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)
- Terminal illness benefit pays out full cover amount
Overview of OUTsurance Life Insurance
OUTsurance Life Insurance offers comprehensive coverage with various optional benefits, allowing policyholders to tailor their insurance to their specific needs. Their policies include Death Cover, Disability Cover, and Critical Illness Cover.
OUTsurance Life Insurance Facts
Coverage:
- Death Cover:
- Accidental Death: Pays out if death is a direct result of an accident.
- Comprehensive Death: Pays out if death occurs during the cover period, regardless of cause. Includes a terminal illness benefit of 50% of the sum assured (up to R1 million) if the life assured has a life expectancy of less than 12 months.
- Optional Education Benefit: Pays out the sum assured upon the death of the life assured to cover education expenses.
- Optional Funeral Cover: Provides financial assistance for funeral expenses.
- Disability Cover:
- Pays out the sum assured if the life assured becomes disabled during the cover period. Two options: “Own Occupation” or “Own or Suitable Occupation.”
- Can be accelerated (reduces death benefit) or free-standing (no impact on death benefit).
- Critical Illness Cover:
- Pays a percentage of the sum assured upon diagnosis of a covered critical illness. Two options: “Core” (covers 27 illnesses) or “Comprehensive” (covers 40 illnesses).
- Can be accelerated (reduces death benefit) or free-standing (no impact on death benefit for unrelated claims).
Premiums and Policy Structure:
- Premiums can be level or increasing.
- Sum assured can be level or increasing.
- OUTbonus: A cash refund of premiums for loyal, claim-free customers.
Exclusions:
- Suicide within the first 24 months of the policy or an increase in coverage.
- Intentional self-inflicted injury or illness.
- Driving under the influence of alcohol.
- Drug use (unless prescribed and used as directed).
- Refusal of recommended treatment.
- Criminal activity.
- Participation in war or terrorism.
- Nuclear events.
- Critical illness due to excessive alcohol or drug use.
Comparison Table: 1Life Life Insurance Vs OUTsurance Life Insurance
| Feature | 1Life Life Insurance | OUTsurance Life Insurance |
|---|---|---|
| Coverage Amount | Up to R10 million | Varies, includes comprehensive options |
| Medical Exam Required | No (only HIV swab) | No (but detailed medical and circumstantial evidence required for claims) |
| Immediate Cover | Yes | Yes (accidental death) |
| Terminal Illness Benefit | Yes (full cover amount) | Yes (50% of sum assured up to R1 million) |
| Premium Structure | Fixed for first 12 months | Level or increasing |
| Additional Benefits | Digital legacy app, funeral and memorial benefits | Education and funeral cover, OUTbonus |
| Waiting Period | No waiting period for life cover | 6 months for natural death |
| Optional Riders | Funeral cover, grocery benefit, repatriation service | Education benefit, funeral cover, disability and critical illness cover |
| Exclusions | None specified | Suicide (first 24 months), intentional injury, DUI, drug use, criminal activity |
Benefits of Each Life Insurance Policy
Benefits of 1Life Life Insurance
- High Coverage Amounts: Up to R10 million coverage for life insurance.
- No Medical Exams: Only an HIV swab required, making it accessible and convenient.
- Immediate Underwriting: Quick processing and immediate cover for accidental death.
- Fixed Premiums: Premiums remain constant for the first 12 months, providing cost predictability.
- Additional Benefits: Includes Pay Now death benefit, digital legacy app, and combined funeral cover options.
- Cost Savings: Pure Life Plus Cover saves up to 28% on premiums compared to separate policies.
Benefits of OUTsurance Life Insurance
- Comprehensive Coverage Options: Includes death cover, disability cover, and critical illness cover.
- Flexible Premiums: Choice of level or increasing premiums and sum assured.
- OUTbonus: Cash refund for claim-free loyal customers.
- Optional Benefits: Education and funeral cover options to further customize the policy.
- Terminal Illness Benefit: Pays out 50% of the sum assured if the life assured has less than 12 months to live.
- No Medical Exams: Simplified application process without extensive medical examinations.
Requirements of Each Life Insurance Policy
1Life Life Insurance Requirements
- Basic identification and personal information.
- HIV swab test for underwriting purposes.
- No extensive medical exams required.
OUTsurance Life Insurance Requirements
- Basic identification and personal information.
- No medical exams, but detailed medical and circumstantial evidence required for claims.
- Adherence to policyholder responsibilities such as paying premiums on time and providing accurate information.
Pros and Cons of Each Life Insurance Policy
1Life Life Insurance
Pros:
- High coverage amounts up to R10 million.
- No extensive medical exams required.
- Immediate underwriting and cover for accidental death.
- Fixed premiums for the first 12 months.
- Additional benefits like the Pay Now death benefit and digital legacy app.
- Cost-effective combined cover options.
Cons:
- Limited detailed information on exclusions.
- Specific benefits like the digital legacy app may not appeal to all customers.
OUTsurance Life Insurance
Pros:
- Comprehensive and flexible coverage options.
- Choice of level or increasing premiums and sum assured.
- OUTbonus rewards loyal, claim-free customers.
- Optional benefits like education and funeral cover.
- Terminal illness benefit provides financial support in critical times.
- Simplified application process without extensive medical exams.
Cons:
- Specific exclusions such as suicide within the first 24 months.
- More detailed medical and circumstantial evidence required for claims.
- Optional benefits and riders can increase the overall premium cost.
Who Each Policy is Suitable For
1Life Life Insurance
1Life Life Insurance is suitable for individuals seeking high coverage amounts without the hassle of extensive medical exams. It is ideal for those who value immediate underwriting and additional benefits like funeral and memorial cover. The Pure Life Plus Cover is particularly attractive for families looking for a cost-effective combined life and funeral cover.
OUTsurance Life Insurance
OUTsurance Life Insurance is suitable for individuals who prefer comprehensive and customizable coverage options. It is ideal for those looking for flexibility in premiums and sum assured, and who may benefit from optional riders like education and funeral cover. The OUTbonus is a great incentive for loyal, claim-free customers, making it appealing for long-term policyholders.
Additional Comparison Indicators
Customer Service and Support
Both 1Life and OUTsurance offer robust customer service and support. However, 1Life is known for quick quotes and one-call underwriting, which can streamline the application process. OUTsurance provides detailed policy documents and emphasizes transparency, which can be beneficial for policyholders who prefer a thorough understanding of their coverage.
Claims Process
1Life provides immediate underwriting and cover for accidental death, with a straightforward claims process due to the lack of extensive medical exams. OUTsurance requires more detailed medical and circumstantial evidence for claims but offers comprehensive coverage and flexible payout options.
Conclusion
Both 1Life Life Insurance and OUTsurance Life Insurance offer valuable benefits and coverage options for South African consumers. 1Life stands out with its high coverage amounts, immediate underwriting, and cost-effective combined cover options. OUTsurance excels with its comprehensive and flexible coverage, OUTbonus reward program, and optional riders for added protection.