SA's No 1 Insurance Blog

Did you know 1Life offers life insurance as well as funeral cover?

Their life insurance is aimed at settling all your debts and replacing your income in the event of death. Think of all the day to day expenses which will continue even after they’ve tossed the last shovel full of earth.

Funeral cover, on the other hand, is there to pay for a funeral – whether it be yours or one of your family members. Some of the expenses which 1Life will pay are:

  • Groceries if the main member passes away (R6,000 made up of a R1,000 a month for 6 months)
  • The Memorial benefit (R5,000 towards a tombstone on the anniversary of the burial for anyone older than 14 years of age), and
  • Repatriation from anywhere in South Africa including the cost of having one family member accompany the deceased. We tend to gloss over the cost of repatriation, but imagine the cost of flying you back from Cape Town?

Then there’s the fact that you can add your wife, up to 5 kids, and 10 extended family members on your policy. Your life insurance isn’t going to do that for you.

Another thing about 1Life funeral cover is that it pays out within 24 hours of having received all the documentation. With life insurance, depending on the circumstances of death, the payout could take a week or more.

Not cool to be left lying around in a freezer while they sort out your life insurance payment.

So how much funeral cover can you buy?

1Life offer you anywhere between R5,000 per person and R100,000 per person depending on age.  So, for instance, you can’t take out R100, 000 funeral cover for your five-year-old.

A cool feature is the fact that if the main members passes away; that everyone else’s cover will remain in place for an additional 24 months at no charge.

What if I die a day after the first debit order runs?

There is a waiting period of 6 months for death by natural causes which is fair. Accidental death claims are paid without a wait. Suicide has a 24 month waiting period.

Does everyone on my plan pay the same?

Unfortunately only in a perfect world would the answer be yes. It all depends on age and the number of people included on your funeral plan.

  • You, as the main member, and your spouse must be between the ages of 18 and 65 when joining.
  • Your children are covered until 21 unless they’re studying, in which case up to 25, but you must let 1Life know since they fall off automatically after 21.
  • Parents up to the age of 75 may join, while
  • Other family members may join up until 65

So how does the age thing work?

  • The main member and spouse may buy anywhere between R5,000 and R100,000 funeral cover
  • Children 5 years old and younger – between R1,250 and R10,000 cover
  • Children between 6 and 13 – R2,250 and R15,000 cover
  • Children from 14 to 21 (or 25) – anywhere between R5,000 and R45,000 cover
  • Parents and extended family – R5,000 to R45,000 cover

Will you be taxed on the benefit?

Thank goodness, no!

Must I use the money for a funeral?

Not at all! You can use the money to settle unpaid medical bills if need be. Remember 1Life is paying the money to your beneficiary and not to the funeral parlour.

The one thing 1Life does which I haven’t seen elsewhere

1Life has a website by the name of The Truth About Money.

A lot of people aren’t that clued up when it comes to money, and the point of this website is to help them out. What 1Life offers on this website is the following:

  • Debt counseling telephonically
  • Drafting of a basic will which can include a Testamentary Trust for your children
  • Legal advice and mediation if you need help winding up an estate of one of your relatives
  • A digital financial education course offered through Boston City Campus nationwide

This is all at no charge to 1Life policyholders.

So that’s it. What more can we say? Even if you don’t have life insurance in place – the least you can do for your loved ones is take out funeral cover.

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