Old Mutual Life Insurance Review
Old Mutual Life Insurance at a Glance
- Cover amounts start from R100,00.
- Receive a lump sum payout or monthly payments.
- Customise your policy by adding extra benefits.
What we like:
Give yourself and your loved ones peace of mind with a life insurance policy from Old Mutual. From the application process to preliminary medical testing to tax obligations, Old Mutual’s life insurance policies offer South African consumers ease and value for money. The policies are customisable, so you can decide on the cover amount and other policy details.
Best for:
Old Mutual’s life insurance policies are best suited to people who know exactly what they want to get out of their life cover. Given that the policies are tailored to your situation, you could find yourself paying higher premiums than you need to if you are not careful. There are several options to choose from, whether you prefer a single large payout or regular monthly payouts, and policy details can be adjusted after major life events. This means you can increase your cover amount to include new beneficiaries.
- Opportunity to earn cash back on premiums.
- The policy is completely tailored.
- The cover depends on what you can afford.
- Hefty fees for including the ‘cash back’ feature on your policy.
Life insurance is a great way to make sure that your family continues to maintain their standard of living, even if you’re no longer around to enjoy the little moments with them. The lump sum can be put towards paying off debts, such as your home loan, or saved for milestones like going off to university.
As a trusted South African insurer, Old Mutual began as the first mutual life insurance company in the country. So, let’s discuss what makes Old Mutual life insurance worthwhile, and whether it could be the life insurance policy for you!
What Makes Old Mutual Life Insurance Different?
If you’re trying to be more financially savvy, Old Mutual may be the right insurer for you!
The company keeps their life insurance premiums constant for the first 23 months. This means you can easily budget ahead and spend your money more wisely! The lump sum amount paid out is also tax-free, so your loved ones can receive more money and less stress.
Old Mutual does not require you to undergo any extensive medical tests before approving a policy. This can make the entire process less daunting for consumers. Additionally, the company offers free nationwide HIV testing.
Old Mutual Life Insurance Coverage Options and Benefits
There are four main life insurance policies with a number of additional cover options, so your policy and premium are tailored to your needs!
Old Mutual Protect Life Cover
With this policy, cover starts from R100,000 and a single lumpsum payout is made upon a successful claim. A claim can be made after you pass away, or if you are diagnosed with a terminal illness and have a life expectancy of less than one year.
The maximum cover amount is dependent on what you can afford to pay in premiums, and you can decide to increase this amount later on in life. Alongside your ‘Protect Life Cover’ policy, you can choose to add on disability insurance, illness insurance, or a premium protection cover.
Old Mutual Protect Life Income Cover
Similar to the ‘Protect Life Cover’ policy, this policy offers monthly payments to your chosen beneficiaries for a period of time. This option is ideal for primary financial providers, as it can serve as compensation similar to your salary. The payouts are tax-free and start from R3,000 per month, and you can choose the cover amount and cover term.
While a lumpsum offers your family more financial freedom, receiving your payout in monthly payments could be the wiser choice for many reasons. Monthly payments are easier for your family members to budget, especially if the money is used for living expenses.
This policy does not pay out if you are diagnosed with a terminal illness, and there is no optional disability or illness insurance. However, you can add a ‘Premium Protection’ benefit, so your policy will still be active if you cannot pay your premiums due to death, disability or retrenchment.
Old Mutual Protect Last Survivor Cover
This policy is similar to the ‘Protect Life Cover’ policy in that the cover amount starts from R100,000, and a single payout is made in the event of a successful claim. With this policy, the cover amount is paid out when the last insured person on the policy passes away or is diagnosed with a terminal illness.
This can sound confusing, so let’s consider an example. Let’s say, you and your partner are insured under one Old Mutual life insurance policy with your child as a beneficiary. Old Mutual Protect Last Survivor Cover will pay out the cover amount to your child when you and your partner pass away or are diagnosed with a terminal illness. This is opposed to paying out the cover amount while either you or your partner are still alive.
Old Mutual Protect Accidental Death Cover
This policy pays out a tax-free lump sum in the event of accidental death. Cover amounts range from R100,000 to R2,000,000. Claims cannot be made in the event of a terminal illness diagnosis, and you cannot add disability or illness insurance to your policy.
Pricing and Discounts of Old Mutual Life Insurance Products
The pricing of your Old Mutual life insurance premiums largely depends on your cover amount, additional cover options, and risk factors. Your policy is customised to the type of cover you choose and your needs, so your premiums are specific to you.
Old Mutual life insurance uniquely offers a cash-back option on their life insurance products. This optional extra does increase your premium slightly but offers 15% in cash back after five years of premiums.
All life insurance policies include an optional ‘Premium Protection’ feature. This effectively ensures that your policy will still be valid if you can no longer pay your premiums. Your cover will remain in place if you pass away, are retrenched, or become disabled/impaired such that you can no longer work.
Where Old Mutual Life Insurance Can Improve
The cash-back feature is not automatically included in your policy and you have to pay an additional premium to access it. Old Mutual estimates that including ‘Cashback’ on your policy increased your premiums by approximately 12,5%. Additionally, the policies have a number of terms and conditions that are difficult to keep track of and could prevent you
How to Request a Quote for Old Mutual Life Insurance
- Provide your name and contact number on the Old Mutual website for a callback
- Phone 0860 66 66 59 to speak to a consultant
It may be useful to have information regarding your income, personal details, and details of your potential beneficiaries on hand. Providing detailed and accurate information can insure that you receive an accurate quote or assistance with finding the financial product that best suits your needs.
Frequently Asked Questions (FAQ)
How long does Old Mutual take to process claims?
Between 15 and 60 days, however, this is just a guideline and your claims process depends on your circumstances and policy.
How many beneficiaries can I have on my life insurance policy?
It’s up to you! Old Mutual does not have any strict rules regarding the number of beneficiaries you can have on your life insurance policy.
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