Most of us know that you can get different types of car insurance and household insurance, but did you know there’s more than one type of life insurance? In South Africa, two of the most common are term life insurance and whole life insurance but the option that’s “best” for you will depend on your needs, so let’s explain the difference.

What is term life insurance?

Term life insurance is typically less expensive than whole life insurance and only covers you for a specific term, such as 10 years, rather than your whole life. If you, had to pass away during this agreed period of time, your beneficiaries will receive a payout. The negative is that once this policy expires, you’d have paid monthly premiums for it and have nothing to show for it. You might also live longer than the term you selected and, should you then decide to invest in whole life insurance, or another term insurance policy, your premium will be calculated using your current age and health status which can result in a higher rate. This is why it’s a good idea to get life insurance when you’re young and healthy, so you can enjoy the “discount” of paying lower premiums.

What is whole life insurance?

Whole life insurance is exactly that. It will cover you for your entire life, provided you continue to pay your premiums. This is the type of policy we offer at MiWayLife. It typically costs more than term life insurance but isn’t nearly as expensive as you’d think. In fact, with MiWayLife, you could get R500 000 in life cover for as little as R164* per month. Your cover amount will also grow by 5% each year to ensure you keep up with rising costs.

Disability insurance and critical illness insurance

Other more selective types of life insurance include disability insurance and critical illness insurance (also referred to as dread disease or terminal illness insurance).

Disability insurance offers financial protection against the risk of losing your income if you suffer an injury or illness that permanently prevents you from earning a living. Critical illness insurance won’t cover you in the event of an accident or even if you develop an illness that prevents you from working. However, if you’re diagnosed with a critical illness, such as terminal cancer, it will pay out a lump sum.

The benefits of MiWayLife’s 4-in-1 policy

At MiWayLife, we like to keep things simple so we offer a 4-in-1 policy. This includes comprehensive whole life insurance plus a terminal illness benefit, a funeral benefit and funeral cover for your family members that can be covered as additional lives by your policy. This way, you can benefit from multiple types of life insurance for one low monthly premium and enjoy even more peace of mind. You’ll also get to enjoy the freedom of choice. You can increase or decrease your cover amount as you wish and, should you be diagnosed with a terminal illness, will have the option of immediately claiming 50% or 100% of your cover immediately.

At the end of the day, the type of life insurance you choose will be up to you, but while you’re thinking about it, why not get a quick quote so we can impress you with our affordable premiums?

Did You Know:

You can now take out life cover with us online in a few simple steps. No calls and no agents! Make sure to take care of those you love today by buying MiWayLife cover online.