Updated 20.07.2021

Life Insurance in South Africa

Affordable Life Insurance Cover South Africa

Life Insurance Quotes

When you decide to take out a life insurance policy, you’re probably looking for cover to protect your surviving dependents financially when you die. There are many different types of life insurance, and you should be able to find one to suit your budget.

Compare the best Life Insurance Providers in South Africa 2021

Life Insurance ProviderBenefits and ServicesCustomer Satisfaction ScoreLinks
Discovery Life Insurance
Discovery Life Insurance
Discovery is the biggest life insurance provider in South Africa.75.7Learn more
Old Mutual Life Insurance
80.3Learn more
Metropolitan Life Insurance
Metropolitan Life Insurance
79.6Learn more
Sanlam Life Insurance
Sanlam Life Insurance
78.6Learn more
Momentum Life Insurance
Momentum Life Insurance
Liberty Life Insurance
Liberty Life Insurance
Loss of Income Protection
Lifestyle Protection
Wellness Bonus
75.2Learn more
FNB Life
82.2Learn more
83.2Learn more

What is life insurance?

Life insurance is a contract between you and the insurer. You are guaranteed payment to your named beneficiaries on your death. If you continue to pay your premiums, the insurance company pays out a death benefit when you die.

Premium payments are set by the insurance company using actuarially based statistics. Factors that can influence your premium are your age, medical history, personal risk propensity, and occupational hazards.

How do you get life insurance?

Getting life insurance quotes is easy. All you need to do is go to the website of an insurance company, and you will be presented with a form to fill in to request a quote.

If you use insurance brokers, they are paid a commission for bringing your business to the insurance company. This may raise your insurance premiums. This does not happen if you get your life insurance quotes directly from the life insurance companies.

Some companies, such as Hippo.co.za, compareguru.co.za or lifecompare.co.za offer you the opportunity to compare life insurance quotes to find the most affordable option for you.

For a life insurance quote, you will need to provide information about your income, education, age, whether you smoke and more. A company may require additional medical tests. It’s important to give all of this information when you take out a policy to ensure that you are fully covered.

Some insurance companies even offer life insurance coverage over the phone. You don’t need to fill in forms or go through a full medical. As long as you pay your monthly premiums, your cover continues until you die whereupon your beneficiaries will receive a lump sum payment.

Who is covered in a life insurance policy?

You can choose who to cover in your policy. You can cover yourself, your spouse, your children, your parents, and even your extended family.

How much cover should you take out?

In general, the more protection your life policy covers, the higher your premiums. If you want to provide your dependents with a regular income after your death, you need to look at what you currently pay out on a monthly basis and then calculate what these costs may be in the future so you can come to a realistic figure.

You want your loved ones to have enough money to meet their financial needs, your children to have enough money to complete their studies and your spouse to be able to meet any debt obligations.

You may need some advice on calculating how much cover you need. This can be provided by a broker, but you can receive advice by filling in a form online that specifies your question and gives a time for a financial adviser to call you.

Different types of life insurance policies:

Term life insurance policies are probably the most popular and simplest, but today many different types of life insurance policies exist.

Term life insurance offers cover at a fixed rate for a temporary period of time. Once this term is over, you are no longer covered and must get further coverage if you want to do so. If you die during this term, your beneficiaries are paid out a lump sum.

This cover can be used pay for education, existing debt, funeral costs, etc. This type of policy is very affordable, but it does not increase in value as you pay in to it.

Permanent life insurance differs from term insurance. Whole life insurance is one of the simplest types of permanent life insurance cover. It is taken out over your whole lifespan.

The monthly premiums are fixed for life as long as you pay them monthly. You pay into the policy until the “face value” and the “cash value” match. If you die, beneficiaries receive at least the ‘’face value”, despite your age or what the “cash value” is at the time. You are able to use the cash value generated through withdrawal options, so this policy is part investment and part insurance.

Credit life insurance is designed to pay off your debt. You pay it off over time until the outstanding debt amount, and the face value of the credit life insurance policy are both at zero value.

Few people understand that life insurance encompasses many different long-term insurance options. Many companies offer you the option of adding disability, critical illness, income protection or funeral cover to your life insurance policy to make your cover more comprehensive.

Top Life Insurance Companies

Life insurance can be complicated for the insurers. They have to develop models with great care due to the risk of insuring thousands of people.

Some of the best life insurance providers in South Africa have been around for many years.

Liberty Life Insurance has been providing life insurance to South Africans for many years and has a portfolio of great life products for you and your dependents.

Prudential Life Insurance offers comprehensive, flexible policy options. Its goal has always been to provide affordable life insurance, and it has the financial strength to back some excellent products. It may be a good choice if you’re over 60 and not in perfect health.

Metropolitan Life Insurance is one of the largest insurance-based financial service providers in South Africa and will tailor its products to meet your financial needs.

Final thoughts

Being prepared doesn’t make you a pessimist – it just means when negative things happen, you are provided with a financial safety net. If you’re looking for cheap life insurance quotes, a number of top life insurance companies can accommodate your needs and offer you a policy that suits your budget. You will have the peace of mind that comes from knowing your family are protected should something happen to you.