Life insurance is one of the best ways to protect your loved ones, but we know that some of the terminology can make it feel like insurers are speaking a different language. At MiWayLife, we keep things simple and clear, so you know exactly what you're getting and can make confident decisions to give your family peace of mind.

Let’s take a look at some key life insurance terms to help you understand your policy with ease.

Policyholder
The person who owns the life insurance policy.

Life Insured
The person whose life is covered by the policy. If you take out life insurance for yourself, you’re both the policyholder and the life insured.

Beneficiary
The person (or people) you choose to receive the payout when the life insured passes away. You can have multiple beneficiaries and decide how much each should receive.

Death Benefit
The lump sum your beneficiaries will receive if the life insured passes away.

Premium
The monthly amount you pay to keep your policy active.

Grace Period
A little breathing room! If you miss a payment, MiWayLife gives you 15 days to catch up before your policy lapses.

Lapse
What happens if you miss too many payments - your policy gets cancelled.

Underwriting
The process insurers use to assess your health, lifestyle, and risk level before deciding on your premium. The younger and healthier you are, the lower your premium is likely to be.

Term Life Insurance
A policy that covers you for a set number of years. If the insured person dies during this time, the beneficiaries get a payout.

Whole Life Insurance
Coverage that lasts your entire lifetime—as long as you keep up with your payments. This is the type of policy MiWayLife offers.

Funeral Cover

Designed specifically to cover funeral expenses. At MiWayLife, every life insurance policy includes a built-in funeral benefit of up to R50,000, paid out swiftly in addition to your life cover amount. Only need funeral cover? Our MiFuneral policy is a hassle-free, digital-first option.

Claim

A formal request to receive the insurance payout.

Accidental Death Benefit

An extra payout if the life insured’s death is due to an accident.

Terminal Illness Benefit

A lump sum payout if the life insured is diagnosed with a terminal illness. All MiWayLife policies include this benefit, allowing you to access all or part of your payout while you’re still alive.

Exclusions

Certain situations where an insurer won’t pay out. One common exclusion among life insurance companies, including MiWayLife, is death resulting from involvement in illegal activities. Always read your policy carefully!

The Bottom Line

Understanding life insurance doesn’t have to be complicated. With the right knowledge, you can take charge of your financial future and ensure your loved ones are protected—no guesswork, no confusion. And remember, if you ever have questions, your insurer should always be ready to help with clear, simple answers.

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.