Who is the best bang for buck out there when it comes to life insurance. My current insurance is just a black hole but I see some companies are now giving some cash back after some years. Anyone done any analysis on the best options?
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Life Insurance
- Thread starter hsmnel
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Other Pineapple Smurf
Honorary Master
Use a broker and never ever go direct.
A good broker will sell you a life insurance basket of products which meet your needs. Also ask around and talk to at least three brokers before you decide.
A good broker will sell you a life insurance basket of products which meet your needs. Also ask around and talk to at least three brokers before you decide.
AlmightyBender
Executive Member
Give us your location and perhaps somebody can PM you the contact details of good brokers. Broker is definitly the way to go.
dj_jyno
Executive Member
Just because your current insurer is "a black hole" doesn't mean that they are bad. They might offer you much better cover than the ones giving cash back.
Freshy-ZN
Executive Member
Do you actually have a quote from a 'cash back' option? Do you use Outsurance for your car and household too?
Other Pineapple Smurf
Honorary Master
You end up paying for cash back, nothing is free. Also a good broker will be able to explain different products to you and help you compare.
Just understand that Outsurance structures their products that its impossible to compare of a normal provider. Its to make it impossible to compare and give you a false sense of value.
My advice is that if you have a broker and he is not giving you any value then find another one. Also a broker will sit with 2-10 thousand clients and makes very little off individual policies so "cutting out the middle man" is all marketing BS
SirFooK'nG
Executive Member
I'm a Discovery Health member, so I qualified for the Discovery life policy that pays out every 5? or 10? yrs and then at 65 i think, you get a lumpsum payout.
Can you expand on that?
I'm looking to cancel my R1.3m life and disability cover with Discovery in favour of a R2m life with R1.5m disability cover at Outsurance at slightly less than I'm paying now (still deciding between the fixed or annual increase options). As far as I can tell, the products are the same (except for the value of course), so what am I missing?
Got a quote from Standard Bank for R5mil life cover with a 20% cash back after 10 years for R1200/pm. This was slightly cheaper than my current cover. Spoke to my broker today (Liberty) and he informed that I can get a cash back option if I have a savings plan or a retirement product linked to my life cover. Went for it as taking a R500/pm savings plan I get a 40% cash back on total portfolio premium payments after 5 years. The current return on the savings plan is not so great (+-4-5%) but I had a policy for the same premium that I was going to cancel anyway. Just a pitty he didn't told me this when I took out the life cover then I could have almost received my first cash back.
Billy
Expert Member
Don't you guys have a Company Pension? I always found six times salary plus dependants pension to be more than enough cover.
This is Life cover. (and don't have pension as I am self employed and doing my own pension/investments.. And if I understand correct the pension only start paying at retirement age, even if you die earlier (stand under correction)
Billy
Expert Member
Every pension scheme that I have had has had Life Cover of several times annual earnings (6) and Widow and Orphan benefit payable from the death of the contributor.
As I have always contributed to a pension fund, I have never needed to take out additional life cover. The Building Societies and banks have always accepted the life cover of the pension fund as cover for the loan. My previous pension fund also had disability cover and funeral cover.
If your pension fund has no life cover then I would suggest that you have a poor pension fund.
Life Cover is still life cover whether it is tacked on to an endowment or annuity policy, a pension scheme or a stand alone life policy. The bottom line is if you die what will your dependants need and what will they get?
Cius
Honorary Master
If you have an honours degree PPS will probably beat every quote hands down and still give you money back into the Surplus Rebate account. Every other company keeps profits. PPS is more like a member trust so profits come back to you into the SRA (essentially an RA). I will never insure my life with anyone else. I used to quote other companies other than PPS but not only where they more expensive in general but none could touch the awesomeness of the rebates into the SRA. Most years I get between 60% and 80% of my contributions back into the SRA for my life and disability cover.
Freshy-ZN
Executive Member
PPS is awesome,as you say it's about being a member not a client so you benefit from the profits.
There is no such thing as a free lunch. It's nice to get cash back, but you always pay for it! There are a lot of companies with smoke and mirrors. Life insurance should be life insurance and it should pay out when it matters! Money back etc are nice, but secondary to the primary function. Don't be lured by big cash backs and choose an inferior product.