Auto & General Life Insurance and Liberty Life Cover are both designed to offer financial protection to policyholders’ beneficiaries in the event of death, terminal illness, or disability. They both provide significant benefits, but the structure of each insurance policy differs in how they handle claims, exclusions, and eligibility requirements.
Auto & General Life Insurance provides broad coverage for life, terminal illness, disability, and dread disease, with flexible coverage amounts. It emphasizes simplicity with quick payouts, especially for funeral benefits, and guarantees assurability for life’s changing circumstances.
Liberty Life Cover, on the other hand, focuses on convenience, offering simple application processes and customizable options for life’s various stages. It also allows for unlimited beneficiaries and provides tax-free payouts up to R10 million.
The table below highlights a comparison of the fees, benefits, and unique features of each policy.
| Feature | Auto & General Life Insurance | Liberty Life Cover |
|---|---|---|
| Coverage Amount | R200,000 to R10 million | Up to R10 million |
| Funeral Benefit | R50,000 (paid within 24 hours of valid claim) | None |
| Terminal Illness Benefit | Yes (full payout if diagnosed with < 12 months life expectancy) | Yes (full payout) |
| Disability Cover | Yes (Occupation-based or Event-based) | No |
| Dread Disease Cover | Yes (R50,000 to R4 million) | No |
| Medical Exams | No medical exams required | No full medical exams required |
| Premiums | Based on individual risk profile | Start from R128 per month, based on risk profile |
| Guaranteed Assurability | Yes (increase or decrease cover based on life changes) | Yes (flexible based on life changes) |
| Beneficiaries | Designated beneficiaries (not unlimited) | Unlimited beneficiaries |
| Eligibility | South African citizens, 18-65 | South African citizens, 18-65, requires barcoded ID & bank account |
| HIV Test | Not required | Required within 90 days (or limited to accidental death only) |
| Exclusions | No specific exclusions provided | Suicide, illegal activities, war, and specific policy exclusions |
Benefits of Auto & General Life Insurance
- Pure Life Cover: The policy provides financial support for beneficiaries upon the policyholder’s death, with payouts ranging from R200,000 to R10 million. This includes a funeral benefit of R50,000, which is paid within 24 hours of a valid claim, easing the financial burden of funeral costs.
- Terminal Illness Cover: This benefit ensures that if the policyholder is diagnosed with a terminal illness, with less than 12 months of life expectancy, the entire life cover amount is paid out while the policyholder is still alive. This enables beneficiaries to benefit from the payout while handling terminal illness expenses.
- Disablement Cover: Auto & General covers both occupation-based and event-based disablement. The policy pays out a lump sum if the insured becomes disabled and can no longer perform their usual occupation or any other suitable work.
- Dread Disease Cover: If diagnosed with a dread disease like cancer or heart conditions, a percentage of the cover amount (R50,000 to R4 million) is paid out.
- Guaranteed Assurability: The policy allows flexibility by letting the policyholder increase or decrease their coverage amount as life circumstances change, such as marriage, childbirth, or retirement.
Benefits of Liberty Life Cover
- Lump-Sum Payout: Liberty offers a tax-free lump-sum payout up to R10 million to beneficiaries, providing financial security to loved ones after the policyholder’s death.
- Flexibility: Liberty’s life cover allows for flexible adjustments to the coverage amount and the selection of unlimited beneficiaries, providing policyholders control over their life insurance as their circumstances change.
- Simple Application Process: Liberty Life Cover makes the application process straightforward with no need for full medical exams, and you can apply directly over the phone.
- Hassle-Free Cover: Designed with simplicity and convenience in mind, Liberty’s policies are easy to understand, and coverage is based on individual risk profiles, starting from as little as R128 per month.
- HIV Testing: While an HIV test is required within 90 days of the policy start date, Liberty offers free at-home blood tests for convenience.
Requirements for Each Life Insurance Policy
Auto & General Life Insurance Requirements
- South African citizenship
- Age between 18 and 65
- No medical examinations required
- Premiums based on individual risk profiles, which include factors such as age, gender, occupation, and health.
Liberty Life Cover Requirements
- South African citizenship
- Age between 18 and 65
- Barcoded ID and bank account required
- HIV test within 90 days of policy initiation
Pros and Cons
Auto & General Life Insurance
Pros:
- Comprehensive coverage, including life, disability, and dread disease.
- No medical exams required.
- Fast payout of R50,000 funeral benefit within 24 hours.
- Flexibility to adjust cover based on life changes.
Cons:
- No flexibility in selecting unlimited beneficiaries.
- Exclusions not clearly specified.
Liberty Life Cover
Pros:
- Tax-free lump-sum payout up to R10 million.
- Simple and hassle-free application process with no full medical exams.
- Flexible coverage adjustments and unlimited beneficiaries.
- Affordable premiums starting at R128 per month.
Cons:
- Requires HIV testing within 90 days.
- No disablement or dread disease cover.
- Limited to accidental death coverage if HIV test isn’t completed.
Suitability of Each Life Insurance Policy
Auto & General Life Insurance:
This policy is suitable for individuals who are looking for a comprehensive life insurance policy that not only covers death but also includes benefits for terminal illness, disability, and dread diseases. It is an excellent choice for those who want fast funeral payouts, as well as the flexibility to adjust coverage as life circumstances change.
Liberty Life Cover:
Liberty Life Cover is ideal for people seeking simple and straightforward life insurance. It is particularly suitable for those who prioritize convenience and affordability, with its no medical exams and easy application process. The policy’s flexibility to add unlimited beneficiaries and adjust coverage makes it a great option for those with growing families or changing financial goals.
Other Relevant Comparison Indicators
Customer Support: Auto & General provides helpful consultants for guidance, while Liberty emphasizes convenience with direct over-the-phone applications and free at-home blood tests.
Exclusions: Auto & General does not explicitly list exclusions, but Liberty clearly outlines that suicide, illegal activities, and war are excluded, providing clarity to policyholders.
Conclusion
Both Auto & General Life Insurance and Liberty Life Cover offer strong life insurance options, but they cater to different needs. Auto & General provides a more comprehensive package, covering disability, dread disease, and terminal illness, with quick payouts for funeral expenses. Liberty Life Cover, on the other hand, is an excellent choice for those seeking a hassle-free, affordable, and flexible policy with the ability to adjust beneficiaries and coverage easily.
When deciding between these two policies, consider your personal circumstances, such as your need for dread disease or disability cover, and whether you value a quick application process or higher flexibility with beneficiaries.