I got quite excited about the new insurance start-up, Simply, that I read about on Moneyweb recently https://www.moneyweb.co.za/mybusiness/fintech-start-up-targets-insurance-mass-market/ . Cover in the direct market and for “lower income” earners has been too expensive for too long. They also promise that the application process will be quick and simple. So welcome, Simply!
I spent a bit of time playing around on their website generating some quotes and the problem is that while the process may be simple and quick, they are incredibly expensive when compared to some of the traditional insurance companies (based on the quotes that we did).
Consider the example for one of my employees who has a matric and earns a gross income of ±R8k pm. She currently has a fully underwritten life policy with R520k life cover, R250k critical illness (dread disease) and R280k impairment cover (as well as a funeral benefit) for ±R220 per month.
Similar cover through Simply of R500k life cover, R300k disability and R20k funeral cover (they don’t offer critical illness) will cost her ±R320 pm. That’s substantially more expensive (with fewer benefits) than her existing policy! Simply put, I would not recommend this cover at this stage.