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SA's No 1 Insurance Blog

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The steps in taking out life insurance have never changed. In exchange for covering your risk (dying, without enough money to look after your family), the life insurer then accepts a regular payment from you called a premium. The day you eventually kick the bucket (provided your premium payments are up-to-date), your beneficiary gets a pay-out. But let’s be honest for a second, taking out life insurance is a hack! Once you’ve accepted a quote, you have all the medicals to look forward to…and who has time for that, right?

If you are in reasonably good health, then all you need to fret about is a jab in the arm, with a sharp needle, and the prospect of that is about as exciting as a trip to your local Home Affairs office (ok, perhaps not as bad, but you get the idea). For the unlucky few who wouldn’t call themselves “fighting fit”, a full medical, which includes a brisk jog on a treadmill, and perhaps even a request for all your past medical history, is the most likely outcome. Oh, happy days!

What if an insurer decided to do away with the medicals, and instead simply required your family and friends to “endorse” you?

That’s an interesting thought. Before we get to that, let’s answer that question by asking another question: Why do life insurance companies care so much about your health and your lifestyle choices?

Simple really – think about the concept of insuring someone’s life, for a second. It sounds like a terrible business proposition because unlike car insurance (the person might or might not prang the car, or the car might never get stolen), each one of us is going to die.

Death, like taxes, are a certainty 🙁

Asking questions about your health, and getting you to go for medicals, is the life insurer’s way of making sure that when they provide you with a quote, they have priced their risk correctly and can sleep easy knowing that they have done a good job.

Fact: Young and healthy people get better life insurance rates than older people who have more health issues, because they are more likely to die sooner.

It’s as straightforward as that.

Ok, so life insurance companies are always going to be requesting medicals and we just need to reside ourselves to the fact that the process is never going to change.


The guys and gals at Colectiv have started a life insurance offering, so unique, that we thought we had to tell you about it. It’s based on a social network concept and we are going to explain it in the simplest way possible.

When you join Colectiv, you apply for life cover (their rates are as competitive as anyone else in the industry). Then rather than asking you to go for medicals, Colectiv will allow you to put in the details of your friends on your profile.

Your friends and family members can answers questions about your health and lifestyle on a webpage. Rather than relying on medicals, they have figured out that your family and friends know you better than anyone else, and an endorsement from them is as good as an clean bill of health from a GP.

It makes sense if you think about it, right?

Let’s say you are into a healthy lifestyle and hitting the gym on a regular basis. You have kept the binge drinking down to a minimum and chucked the ciggies in the bin.

Who is better placed to confirm this information than your family and friends?

If the guys and gals at Colectiv can confirm what you’ve said is correct, then they don’t need you to go for a medical.

Here is the kicker

Not only can you dodge a medical, but every time someone endorses you, Colectiv will add additional free life cover to your policy.

Think about that for a second – if you provide Colectiv with 10 family and friend’s names and they all endorse you, Colectiv will add 10 multiples of additional life cover to your policy, for free.

How much extra life is each endorsement worth?

Well that depends on the quality of the endorsement. The more thorough the endorsement, the more life cover gets added to your policy. The beauty is that each endorsement increase your cover, it will never decrease it.

What’s neat about the process is that you are kept up-to-date the entire time. Every time additional life cover is added to your policy, you will receive an SMS notification telling you that your life insured amount has been adjusted upwards.

Are you in the market for life cover? You should try the Colectiv model out as they are running a special where your first endorsement results in a flat 10% boost! – Join today.

Colectiv will also add 10 lots of additional life cover to your policy, for free.

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