You and your family members are covered for the costs of a respectable funeral on your funeral policy. But what about their other expenses after you pass, such as food, transport and housing costs? Will your family have enough to pay these without your income? A life cover policy can help! We’ve answered five frequently asked questions to help you decide if you need life cover.
1. Will I be able to afford life cover?
Life cover premiums are usually a few hundred rands for a large lump sum (sum assured), for example R400 a month for R750 000 cover (risk profile dependent). Your premium will depend on how much cover you take, and your personal risk circumstances such as your age, state of health (including whether or not you smoke), and your occupation. Most people who apply for life insurance are granted cover at standard rates, which are the lowest rates available.
The best way to find out how much you would pay for life cover is to request a quote or chat to a financial adviser who will work out the numbers. 1Life Insurance can tailor your cover to meet your needs and budget! You can request a quote on our website or our WhatsApp service centre.
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2. Why do I need life cover if I have funeral insurance?
Life cover and funeral cover are different products and both are an important part of your financial plan.
Funeral insurance is limited in the amount of cover that can be taken, for example you can take a maximum of R50 000 cover on a standard funeral policy with 1Life Insurance. This is intended to pay for a respectable funeral and memorial so that your loved ones and family can pay for your service and gathering without any financial stress or taking on debt.
If you have dependants who rely on your income, life cover can help your family pay expenses long after you pass. Life cover is intended to replace the funds an income earner contributed to the family finances.
Bottom line: If you have family members and loved ones who rely on your income, you may need life cover.
3. How much life cover do you need and how much can you take
Unlike funeral cover, life cover allows you to take significantly higher cover amounts if you qualify based on your current income and age. 1Life Insurance offers life cover for up to R10 million.
How much you need depends on your circumstances and dependants. For example, if you have a family of four still at school, you need to ensure their expenses including school fees and transport costs, and further education costs, can be paid. Your life cover can be used for these expenses, and other expenses your family may have and may not be able to cover if you are no longer around.
If the amount you need to cover all expenses isn't affordable, keep in mind that some life cover is better than none! You can always apply to increase the sum assured when your finances allow.
To get you started, our 1Life life insurance calculator can give you a good idea of how much cover you need. You can also chat to your financial adviser and complete a financial needs analysis to determine how much cover you should have.
4. Why do I need to give insurers my medical history and details?
When you apply for life insurance there are medical questions you need to answer such as whether or not you have any chronic conditions, for example high blood pressure, and if they are managed. Insurers also need to know if you’ve had any serious previous illnesses such as cancer. Underwriters use this information to work out the risk of you dying earlier than expected, so they know how much your premium should be. There are two points you need to know about this process:
- Having a health condition or illness, even diabetes, doesn’t mean you cannot get life cover. If your illness is well managed, you may qualify for cover, however it may be at a higher premium or certain exclusions may apply.
- Your medical history is kept secure and remains confidential.
It is vitally important that you disclose all your health conditions and medical history, if you don’t a claim can be declined.
Top tip: At 1Life we do not require any medical examinations or testing, apart from an HIV test (if required on your policy).
5. Why should I buy cover from 1Life Insurance?
It’s quick and easy, and you can be confident in your choice of insurance partner and in the product you buy.
1Life is a trusted, reputable insurer. We have paid out millions in claims and received awards from industry experts and consumers! For example, 1Life Insurance has been named SA’s #1 Direct Life Insurer for 11 years (from 2010 to 2021).
There’s more, but what matters most is that we are focused on you, our customers! We ensure our products are easy to understand, easy to buy, easy to claim and easy to manage. In 2022, the South African Customer Satisfaction Index for Life Insurance named 1Life a leading life insurer for customer satisfaction! We are always innovating, always looking for ways to meet South Africans’ evolving needs so we can change lives for the better.
Is life cover for you?
Let us or your financial adviser know if you are interested in life cover or have any further questions. We can help you with the answers and explain any terms or clauses you don’t understand.