Cancel life cover for a new better one?

F

Fuma

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Suppose I've had a life cover with Sanlam for the past 10 years and currently paying R500 p/m.
Now Old Mutual is offering a "better" cover for R200 p/m. By better I mean they will pay R1m as opposed to R400k I would get from Sanlam in case I die.

What are the dangers of cancelling your 10 year old product for the new one?

The only risk I can see is a waiting period.
 
Thats the only risk...

What you can do is tell Sanlam you will move unless they match, then you might be able to get away from the waiting period issue.
 
Should be no dangers at all - except for as you say waiting period, and possibly medical exam to exclude pre-existing conditions etc.
Maybe call your Sanlam broker and tell them to come to the party.
 
Fuma said:
Will it affect my current bond and car finance?
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Have you ceded your policy to the bank for the bond?
If so you may need to do the same for the new one.
 
Fuma said:
Will it affect my current bond and car finance?
Click to expand...

It will not affect your car finance, but it might for your bond if you've ceded it.. you will need to cede the new one to them as well.

Though I told my bank to get knotted when they wanted me to cede my life policy to them for the bond.
 
B.O.F.H. said:
It will not affect your car finance, but it might for your bond if you've ceded it.. you will need to cede the new one to them as well.

Though I told my bank to get knotted when they wanted me to cede my life policy to them for the bond.
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Listen boet, just cos your nick is the same as my numberplate doesn't give you the right to be inside my head, mkay?

:D
 
Sinbad said:
Listen boet, just cos your nick is the same as my numberplate doesn't give you the right to be inside my head, mkay?

:D
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I isn't being in your head... we just think alike mkay? :p

As for the OP though, on further thought... I actually don't think it can affect your bond if you cancel the current one even if you've ceded it to them.. but it will make it harder to renegotiate a lower rate...
 
B.O.F.H. said:
I isn't being in your head... we just think alike mkay? :p

As for the OP though, on further thought... I actually don't think it can affect your bond if you cancel the current one even if you've ceded it to them.. but it will make it harder to renegotiate a lower rate...
Click to expand...

Pretty sure you'd have to notify the bank though as it changes the risk profile on the account. They may or may not require the new policy to be ceded... up to them I guess.


*changes password on brain to be sure*
 
Thanks guys.
I think, to be safe I will take the Old Mutual one and cancel the Sanlam one in six months (waiting period).
 
six month waiting period? wtf for?

Only waiting period I've ever seen was a 2 year exclusion on suicide...
 
Sinbad said:
Pretty sure you'd have to notify the bank though as it changes the risk profile on the account. They may or may not require the new policy to be ceded... up to them I guess.


*changes password on brain to be sure*
Click to expand...

I would assume you do have to notify them, but they can't summarily go and up the interest rate or anything of that nature since its in a contract.....

*retrieves password from keylogger*

Fuma, maybe jsut talk to Sanlam and get them to come to the party.. you might save yourself R3000...
 
I think you got to wait a couple of years before life policy can be used as cede on other loans such as home loan. I forget the term they use to indicate it is "ripe".
 
I would say that each person needs to revisit their basic life policy at least every 3 years.
Changes in packages, risk profiles and benefits keep changing and so does costs.
It can save you a lot in the long term.
 
wetkit said:
I would say that each person needs to revisit their basic life policy at least every 3 years.
Changes in packages, risk profiles and benefits keep changing and so does costs.
It can save you a lot in the long term.
Click to expand...
I must say I was ignorant in that front. I could have saved myself thousands if I did.
 
You pay R500 for 400k cover? Wow, that's stupid. I pay R450 for 1.4 million cover with Sanlam
 
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