OUTsurance and FNB are well-known financial service providers in South Africa, offering a range of insurance products. OUTsurance is recognized for its innovative approach to insurance, particularly with its OUTbonus feature, while FNB Life Insurance is integrated with the bank’s comprehensive financial services, providing a seamless experience for its customers.
OUTsurance Life Insurance offers comprehensive coverage with options for death, disability, and critical illness cover. The policy is flexible, allowing for optional add-ons like education benefits and funeral cover. One of the standout features of OUTsurance is the OUTbonus, which rewards customers who remain claim-free for a certain period.
FNB Life Insurance, on the other hand, is designed to complement the bank’s suite of financial products. It offers high life cover, with benefits such as funeral cover included at no extra cost and the ability to earn rewards through the eBucks program. FNB also provides specialized cover like Spend Protect, which helps cover a portion of monthly expenses in the event of death.
Comparison Table: Fees and Benefits
Below is a comparison table that highlights the key fees and benefits of OUTsurance Life Insurance and FNB Life Insurance:
| Feature/Benefit | OUTsurance Life Insurance | FNB Life Insurance |
|---|---|---|
| Coverage | Death, disability, critical illness, education benefit, funeral cover | Life cover up to R100 million, accidental death, funeral cover, Spend Protect, Dynamic Life for home loans |
| Premium Structure | Level or increasing premiums, OUTbonus for claim-free customers | Premiums eligible for eBucks rewards (up to 40% back) |
| Sum Assured | Level or increasing, depending on policy choice | Up to R100 million |
| Optional Add-Ons | Education benefit, funeral cover, own occupation disability cover, core and comprehensive critical illness cover | Pay Protect, retrenchment cover, income protection, critical illness, disability |
| Accidental Death Cover | Included, with specific payout conditions | Included, no medical tests required |
| Critical Illness Cover | Core (27 illnesses) and comprehensive (40 illnesses) | Lump sum payout upon diagnosis |
| Disability Cover | Own occupation or own/suitable occupation, accelerated or free-standing | Permanent or temporary disability cover |
| Exclusions | Suicide within first 24 months, intentional self-inflicted injury, drug use, criminal activity | Must be an FNB/RMB Private Bank customer, certain exclusions apply |
| Rewards | OUTbonus for claim-free customers | eBucks rewards (up to 40% back on premiums) |
| Claims Process | Based on medical and circumstantial evidence | Proactive claims process with over R600 million paid out since 2018 |
| Additional Benefits | OUTbonus cash refund, education and funeral cover | R30,000 funeral benefit at no extra cost, Spend Protect, eBucks rewards |
| Eligibility | Open to all, subject to policy terms and conditions | Must be an FNB/RMB Private Bank customer |
Benefits of OUTsurance Life Insurance
- Comprehensive Coverage: OUTsurance Life Insurance offers a wide range of coverage options, including death, disability, and critical illness. The policy also allows for optional add-ons, such as an education benefit and funeral cover, providing a holistic approach to life insurance.
- OUTbonus: One of the most attractive features of OUTsurance Life Insurance is the OUTbonus, which rewards customers who remain claim-free. This bonus can be a significant financial benefit for those who do not claim during the policy period.
- Flexible Premiums: OUTsurance offers both level and increasing premium options, allowing policyholders to choose a structure that suits their financial situation.
- Customizable Cover: Policyholders can tailor their coverage to include specific benefits like own occupation disability cover and comprehensive critical illness cover, ensuring that the policy meets their individual needs.
Benefits of FNB Life Insurance
- High Life Cover: FNB Life Insurance offers substantial life cover, with policies available for up to R100 million. This makes it an excellent choice for individuals seeking significant financial protection for their loved ones.
- Integrated Financial Services: As part of FNB’s broader financial offerings, FNB Life Insurance integrates seamlessly with other banking products, providing a cohesive financial experience for customers.
- eBucks Rewards: FNB Life Insurance policyholders can earn up to 40% back in eBucks on their premiums, making it a cost-effective option for those who actively participate in FNB’s rewards program.
- Spend Protect and Funeral Cover: FNB Life Insurance includes a R30,000 funeral benefit at no extra cost and offers Spend Protect, which provides a lump sum payout to cover a portion of monthly expenses in the event of death.
Requirements for Each Life Insurance Policy
- OUTsurance Life Insurance:
- The policyholder must be a South African citizen or permanent resident.
- The policy is subject to underwriting, which includes medical assessments and lifestyle questionnaires.
- Premiums must be paid on time to keep the policy active.
- Policyholders must provide accurate information during the application process to avoid issues with claims.
- FNB Life Insurance:
- Must be an FNB or RMB Private Bank customer to qualify.
- The policy may require medical assessments depending on the level of coverage.
- Premiums are deducted directly from the policyholder’s FNB account.
- Policyholders must meet the eligibility criteria set by FNB, including being within the appropriate age range and health status.
Pros and Cons of Each Life Insurance Policy
| Policy | Pros | Cons |
|---|---|---|
| OUTsurance Life Insurance | Comprehensive coverage, customizable options, OUTbonus rewards, flexible premium structure | Strict underwriting process, exclusions for certain high-risk activities |
| FNB Life Insurance | High life cover, eBucks rewards, integrated with FNB financial products, no extra cost for funeral cover | Requires FNB/RMB Private Bank account, limited to existing FNB customers, exclusions based on lifestyle choices |
Who is Each Policy Suitable For?
- OUTsurance Life Insurance is ideal for individuals who seek a flexible and comprehensive life insurance policy with the potential for rewards through the OUTbonus. It is well-suited for those who want the option to customize their coverage to include specific benefits like critical illness cover or funeral cover.
- FNB Life Insurance is best suited for existing FNB or RMB Private Bank customers who are looking for a high level of life cover with additional perks like eBucks rewards and Spend Protect. It is a great choice for those who want a life insurance policy that integrates smoothly with their banking services and offers rewards for their loyalty.
Other Relevant Comparison Indicators
- Customer Service and Claims Process: Both OUTsurance and FNB are known for their efficient claims processes. OUTsurance emphasizes the assessment of claims based on medical and circumstantial evidence, while FNB has paid over R600 million in proactive claims since 2018, indicating a commitment to customer satisfaction.
- Digital Experience: FNB offers a seamless digital experience through its banking app, where policyholders can manage their life insurance alongside other financial products. OUTsurance also provides a user-friendly platform, but the integration with banking services is more robust with FNB.
- Policy Duration and Flexibility: Both insurers offer policies that can be adjusted over time, but OUTsurance provides more options for customizing the coverage based on changing needs.
Conclusion
When comparing OUTsurance Life Insurance and FNB Life Insurance, both policies offer substantial benefits, but they cater to different needs. OUTsurance is an excellent choice for individuals seeking a comprehensive and customizable life insurance policy with the potential for cash rewards. On the other hand, FNB Life Insurance is ideal for those who are already FNB customers and want a high level of cover with additional rewards and integrated financial services.
Ultimately, the decision between these two life insurance policies should be based on your specific needs, financial situation, and whether you prefer the customization and rewards offered by OUTsurance or the seamless integration and high cover provided by FNB.
