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Your life insurance policy can change your family’s lives and provide loved ones with financial security and the opportunity to grow their generational wealth. It is essential to take out a policy with a reputable insurance company that prioritizes policyholders and pays valid claims promptly.
Reputable insurers are licensed and offer flexible policies tailored to individual needs. Consider these factors when evaluating and choosing a life insurance company:
Assess financial strength and stability
Make sure your insurer is a licensed insurer
All reputable insurers are licensed by the Financial Sector Conduct Authority (FSCA), which regulates insurers and other financial services providers in South Africa. Licensed insurers must hold a minimum capital amount and reserves to ensure all valid claims can be paid promptly, even during high-claim periods. The FSCA regularly monitors and audits insurance companies to verify compliance with regulations and capital reserve requirements.
Evaluate reputation and customer reviews
Make sure your insurer pays valid claims quickly
Good life insurance companies have a reputation for paying valid claims promptly and receive few complaints when claims are declined. A valid claim meets all policy terms and conditions, such as premiums being paid on time. Over 90% of all claims made in South Africa are paid, so it is uncommon for a claim to be declined. You can assess your insurer’s claims-paying ability by researching complaints made to the Ombud, online reviews, and platforms like Hellopeter. Customer satisfaction and industry surveys also provide insight into reputable insurers. Financial advisers, with their industry knowledge, can also recommend insurers known for timely claims payouts.
Explore policy options and flexibility
Make sure your insurer allows you to tailor your policy to your needs
Life insurance policies should cover your family’s living expenses and future education costs as well as settle your outstanding debt, for example your home loan. You should be able to choose the appropriate coverage amount and add benefits such as an accelerated benefit for funeral costs. Additional coverage options, like dread disease or disability cover, can also be added. Life insurance companies that allow you to customize coverage are a must.
Understand the underwriting process and requirements
Your life insurance company must make it easy to take out a life insurance policy
Underwriting is the process of determining risk factors for each individual, enabling the insurer to offer suitable coverage at a competitive premium. Underwriters consider factors like occupation, health, and education, including whether you smoke or have a chronic condition and how risky your job is. During underwriting, you’ll answer questions about your health, job, and education; these must be answered fully, honestly, and accurately. Questions should be clear and straightforward. If medical tests, like an HIV or blood pressure test, are required, your insurer must provide clear instructions and convenient options for completing these.
Assess customer service and accessibility
Your life insurance policy must be easy to manage
Updating an address, bank details, beneficiary, or even increasing coverage should be quick and straightforward. Your insurer should offer online options, like a secure site for updating details, and skilled consultants should be available to assist with queries.
Consider cost and affordability
Your life insurer must offer coverage at a competitive premium
Your premium should be affordable and within your budget. If it’s not, and premiums aren’t paid on time, your policy will lapse, leaving your loved ones without necessary coverage. Flexible policies allow you to take the coverage you can afford and increase it as needed or as your financial situation changes.
Request quotes from different life insurance companies to compare premiums. Opt for a competitive premium for the coverage you need. Ensure your insurer provides clear information on when and how much premiums may increase, so you can budget accordingly.
1Life Insurance makes it easy to take out and manage life cover
1Life Insurance is a licensed insurer offering a range of flexible life cover policies you can tailor to suit your needs and circumstances. Coverage is available for sums assured up to R10 million at competitive premiums. Buy online and save up to 13% on premiums. 1Life Insurance is committed to changing your loved ones’ lives for the better by making life cover easy to take out, manage, and claim. Valid, qualifying claims can be paid in minutes, ensuring your family has funds to cover their expenses. Policyholders can manage policies safely and conveniently on the online policyholder services portal and WhatsApp service centre. All policyholders have access to Truth About Money benefits, including free financial education courses, debt management services, a wills and estate benefit, and legal assistance.
Your life cover policy can change your family’s lives
Your policy should fulfill its promise: to change your family’s lives for the better and provide loved ones with financial stability. Licensed, reputable insurers that offer flexible policies, easy management, and straightforward claims processes will deliver on this promise.
Originally published: 29 October 2012
Updated on: 29 September 2024
