Life Insurance Archives -

The great South African funeral-cover rip-off!

Can someone explain to me why funeral insurance is so expensive? It has got to be one of the biggest rip-offs and forms of institutionalised abuse of South Africans. I did some shopping around online

Simply…too expensive!

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!

The numbers dont lie…

Following on from my post last week about direct insurers being so much more expensive than normal insurance companies (even at full commission) I thought I would get a few quotes from them. I asked for R1million life cover for a 44 year old male, non-smoker, top income and health bracket and this is what …

Lies, damned lies and direct insurance!

There seems to be a big drive by the direct life insurers at the moment with vast amounts of money being spent on some very expensive prime time television advertising…Outsurance Life is the latest culprit. The direct insurers may differ slightly but their big claims are all the same…”cut out the middleman”, “no broker, no …

Statistically unlikely…BUT!

According to research conducted by True South Actuaries & Consultants and the Unisa Bureau of Market Research, South Africans are hopelessly underinsured for death and disability. This is not new research or the first time that this conclusion has been reached. But what is new is that for the first time, at least as far …

DIY by all means, but…

I have long been an advocate of people doing their own financial planning. Far too many vested interests in the industry would have us believe that Financial Planning is too complex for individuals to do their own and that as a result they need the services of an advisor/financial planner. Bollocks I say. There is …

OUT is not In!

About 2 weeks ago I responded to an online advert by OUTsurance for Life cover at significantly reduced premiums (because they were cutting out the advisor and therefore the commission). Within “minutes” I received the following email from them acknowledging my request for a quote: “Thank you for requesting an insurance quote from OUTsurance! We …

Where has all the commission gone?

About 5-6 years ago the Life Offices Association (now ASISA) made the claim that up to 35% of the cost of new business was due to the commission paid on the products (http://www.busrep.co.za/index.php?fArticleId=2627965&fSectionId=552&nld=2005-07-18&t=html&f=d) and that was one of the reasons life insurance products were “expensive” and heavy penalties were levied when these were cancelled before …

Appropriate advice?

Consider the following – what would you advise the client? Client A took out an insurance based RA in 2003 (23 year term). She started a debit order of R450 pm (escalating at 10% pa). The current fund value is R63500 The company claims a return of 11.8% pa on the funds but the maths …

1 Life direct – misleading advertising & so expensive!

Just saw the 1Lifedirect TV advert again this evening and it really gets my goat – their advert is so incrediblymisleading. It should come with a huge health warning similar to that on cigarette packets. They were offering a 44 year old male R1million life cover for just under R500 (if i remember correctly) and …

The Financial Coach