Top Best Life Insurance Covers in South Africa

By Dave Nyam •  Updated: 05/29/24 •  6 min read

Life insurance is a very crucial financial tool that offers protection to your dependents in case of your death at a time when it is not supposed to have occurred. It ensures the family’s safety in monetary value even when one is not there to take care of them literally. In South Africa, there exist many life insurance companies, and every one of them offers different benefits and coverage options. This article will review them so that we can help you make a wise decision.

Best Life Insurance Covers 

South Africa boasts a variety of life assurance providers, each with a different cover and benefit. Here are some of the best life covers in the country:

Old Mutual

This policy offers insured individuals an average monthly cost of R200. It offers affordable premiums and features that can be personalized, meaning that you can fit the policy to suit specific needs and your budget. Old Mutual has over 170 years of putting financial security into millions of South Africans.

Absa

Absa Life has taken the lead for the last year. It is understood to be competitive in offering policies and keeps its promise. Among the several life insurance products under Absa are Absa Life Cover, Absa Accidental Death and Disability Cover, and Absa Future Protect Life Cover. Each of the products is structured in a way that would provide financial support to your dependents when it would be most needed.

Discovery

Vitality is Discovery Life’s rewards program, and all it takes is taking care of your health to receive rewards. The plans start at R250 per month and give back up to 50% of life insurance premiums after 5 years with Discovery Life. For the effective management of health and wellness, the company gives back to its customers in cash. The company further offers an Integrated Life Plan that bundles life insurance, medical aid, investments, and other financial services.

Momentum

Myriad by Momentum Life allows policyholders to tailor-make their life cover. Life cover goes up to R30 million from Momentum without any medical exams. They also have this unique feature of Momentum HealthSaver, where you save for your medical expenses not covered by your medical aid.

Hollard Group

Hollard Life Cover is flexible and starts at a premium of only R150 a month with a 96% claim pay-out rate up to 2022. When you choose Hollard, you will have life cover up to an amount of R5 million without any medical tests and for free. Moreover, you will be able to have a free benefit known as the Hollard Life Stage Benefit, through which your life cover amount will automatically increase with each milestone in your life.

OUTsurance

OUTsurance remains one of the celebrated and reputable life insurance providers in South Africa, which contains many different and diversified life insurance products geared to fit varying needs. An individual can access up to R10 million of life cover by use of OUTsurance without having to go through any health tests. They further have an OUTbonus, where they offer 10% of the sum you have paid back in cash after 15 years in the absence of claims.

FNB

FNB Life provides bank insurance as opposed to your standard life insurer. Life insurance can be arranged through FNB up to R10 million without any medical tests or questionnaires. The uniqueness they carry is the FNB Life Cover Accelerator, where you get an extra 10% life cover yearly without paying any additional premiums.

Guardrisk Life Insurance

It’s one of the innovative leaders in the South African industry, with many responsive life insurance offerings. With Guardrisk, you can get up to R5 million in life cover without medical tests, and they also provide the innovative benefit option of the Guardrisk Life Stage Benefit, which automatically upgrades your life cover at certain life stages.

MiWay Insurance

A big insurance company in South Africa, MiWay Insurance, entails total customer-oriented services. With MiWay, life cover can reach up to R5 million, and no medical tests are required. They also have the MiWay Life Stage Benefit, which increases your life cover automatically as you reach certain life stages.

Standard Bank

This offers its customers an array of products to match their requirements. Life cover of up to R10 million can be taken from Standard Bank without undertaking any medical examinations. They have also introduced a unique feature in their products, called Standard Bank Life Stage Benefit, under which the automatic increase of the assured life cover is assured as you reach certain life stages.

What Does Life Insurance Cover In South Africa?

Life insurance in South Africa covers several scenarios. Generally, it offers your family financial protection in the event of your passing from natural causes, sickness, or accident. The rest of what gets covered is going to vary slightly from one policy to the next. Some policies may even offer death coverage due to any cause, while others specifically exclude it due to any reason, like suicide or pre-existing diseases. Be sure to read your policy; know what exactly is covered.

Can I Withdraw From My Life Insurance In South Africa?

In many cases, an insurance company can’t pay in cash in South Africa. In South Africa, though, there are some circumstances in which policyholders will get a chance to put a claim on a policy. For instance, if someone is diagnosed with a terminal disease, one could use 50% – 100% of the cover amount. This is known as a terminal illness benefit and is present in most life insurance policies. The critical point to remember about this benefit is that claiming it will ultimately result in your life cover being reduced by the amount claimed.

What Type Of Death Is Covered By Life Insurance?

It typically covers death due to natural causes, an accident, or illness. But some companies may, under certain circumstances, refuse your death benefit claim if you lie in the application or engage in risky behaviors, for example, if you have not been paying premiums. For example, a failure to disclose a pre-existing condition may have a death benefit denied by the insurer. Likewise, if one were to be in an activity that involves the consumption of drugs or is of a high-risk nature, the insurer could deny or not pay out the death benefit. Honesty in your application and understanding policy terms and conditions are vital.