A life insurance policy is more than just a product that pays out benefits to your family when you pass away. It’s also a safety net that gives you the peace of mind, knowing that your family will also be taken care of if you suffer an injury or disease that prevents you from working.

You know the cost of your life, disability and dread disease cover premiums every month in advance, so you can make life insurance a permanent part of your budget. The benefits – usually a lump sum payment – will be paid to you in the event of disability or dread disease, and in the event of your death, to those identified in your policy as the beneficiaries.

What are the benefits of life insurance?

Our standard life insurance policy offers you a selection of cover options, with life cover currently up to R2 million. Making sure that your family is taken care of is one of our top priorities, so we pay death benefits to them without delay in the case of accidental death. And in recognition of local customs and circumstances, you’re able to nominate up to 10 beneficiaries in your policy.

We offer competitive monthly premiums from a few hundred rands, with life cover available up to R2 million. This money can be used to settle debts like home, car and personal loans, or as an investment that pays a stream of income to your loved ones after your passing.

Added insurance benefits

For an additional fee you can also include other benefits to make your family’s life easier when you pass away. The most important of these add-ons is funeral cover, which pays out between R10,000 and R75,000, depending on the package you choose. The funeral benefit covers the main member, one spouse, 3 children and 4 parents.

Another handy add-on is the grocery benefit that is paid monthly for 6 months on all successful death claims. This monthly benefit ranges from R100 to R5,000. 

It’s important to note that all benefits cease if you stop paying your premiums

A more comprehensive offering is the Value for Life programme. Adding this option to your life cover provides your loved ones with access to legal services, trauma, assault and HIV benefits, as well as funeral support services.

How is your premium calculated?

The monthly premium you pay for your life cover depends on many factors. The amount of cover you’re buying will influence the cost, but so does your age, gender and lifestyle. The younger and healthier you are when you take out a policy, the lower your premiums should be.

Adding extra benefits to your policy increases the monthly premium, but a basic life insurance policy is available for a few hundred rands a month.

Reasons a claim may be declined

In some cases, claims can be turned down if you die from a pre-existing condition, if you are driving while intoxicated, or if your death occurs while you’re breaking the law in some other way.

Suicide, attempted suicide or self-injury within the first 12 months of your policy’s starting date would also disqualify your claim, as would deliberately exposing yourself to exceptional danger, including taking part in hazardous activities.

How to get life insurance

Getting a quote for life cover is as easy as opening the Nedbank Money app and completing the application form. Or you can speak to a banker at your nearest branch.

It’s important to note that all benefits cease if you stop paying your premiums. You’ll be given a grace period of 30 days to catch up on any missed payments, but if you don’t pay within that period, you won’t be eligible for any benefits.

If this happens, you will also not have any claim over any of the contributions you’ve made to date. So, it’s important that you never miss a payment.

Life insurance is an essential part of your long-term financial plan, because it allows you to prepare for the future with affordable premiums. It’s also the financially responsible thing to do, to ensure your loved ones are cared for properly after your departure.