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Life Insurance

If you’re looking for a valuable benefit for your employees, African Unity Life’s leading group risk products offer everything you need. Your staff will appreciate what this benefit means for them and their families. Disability and death are traumatic for a family and the last thing they need to deal with is the financial burden that comes with either of these. The death of a loved one, especially if they’re the breadwinner of the family, brings with it many uncertainties. With African Unity Life’s group life insurance products, employees and their loved ones can enjoy peace of mind knowing that when there is a death in the family, the financial burden is covered and the family can bury their loved one with dignity.

African Unity Life has a full life licence, allowing us to provide tailor-made group life insurance solutions for our clients. This means we’re able to offer a lump-sum payout to employees and their loved ones in the unfortunate circumstance of death or disability. Our life insurance products are there as assurance that, should the worst happen, your employee and their family will be cared for and they can relax with the peace of mind that they will not be financially crippled by the event. The real value of life insurance is that it allows families to grieve without any additional stress.  

If you search for life insurance quotes online, you will find that our rates are competitive, which makes it easier for businesses to offer their employees this benefit. And, in turn, this benefit will have a positive impact on the business, as it will create a loyal workforce and attract the best talent when you’re looking to hire new employees. It’s the simple things like being part of a group life insurance scheme that make employees feel that the business they work for truly cares.   

Group life insurance is typically offered as a piece of a larger employer benefits package. This is because buying life cover for all your employees through a provider on a “wholesale” basis costs less per employee than it would if they were to buy an individual life insurance policy. Basically, the life cover premiums are higher when individuals take out their own policy than when the business purchases group life cover for their entire workforce.  

We distribute our group scheme products through various distribution channels, which include broker networks, insurance administrators and funeral parlour networks, church networks, employers (SMMEs) and underwriting managers.

If you’re considering purchasing life insurance for your workforce, feel free to contact African Unity Life and we will provide you with any additional information you may need. In the meantime, have a look at the FAQs below for answers to any questions you may have. 

Frequently Asked Questions About Group Life Insurance

  • What is life insurance?

    Life insurance is classified as a risk product; this means that you are insuring yourself (the policyholder or main life assured) for a specific event, which in this case is your death.

    It is classified as a contract between you and a life insurer, in which you are expected to be honest when it comes to underwriting so that the insurer can pay out your claim when the time comes. There is also no monthly accrual as with a savings product, but rather life cover offers peace of mind to your family should anything happen to you. Our competitive group life cover pays out a lump sum to the beneficiaries to cover both the immediate and medium-term expenses associated with a death in the family.

    With group life insurance, the owner of the policy would be the employer who then provides the cover option to their workforce. You will generally find that your monthly premium would be more cost effective than if you bought your own life insurance policy. There are also set cover amounts, generally in the form of a multiple of your annual salary, an example would be if you earn R250 000 per annum and the offer is 4 times your salary, you would qualify for R1 million life cover.

    In order to ensure you have the right amount of life cover, it is important that you consider your monthly expenses such as school fees, rent etc. as well as any debt that you have such as a house loan or rental, personal loans, cars etc. and any ‘savings’ you want to leave to help with future endeavours such as university fees. Once you have this basic outlook, you can ensure that your family is taken care of when you are no longer around.

  • Can anyone qualify for life insurance?

    Yes, anyone eligible to take out a life insurance policy. It is however recommended that you take out a life cover policy when you are younger, as your risk profile is generally better (which is how the life company underwrites you) and premiums are less than if you were to start a policy when you are older and might have exclusions applied. Exclusions are when you have a pre-existing condition, such as diabetes, that should you pass away because of this, you might not be covered, or the insurer might provide you with cover but at an inflated premium, to cover the risk.

    Certain insurance companies will also only offer life cover to people within a certain age range, such as 18-65 years, so if you are looking for life cover for parents, you should take this into consideration.

    You will also need to be gainfully employed to qualify for group life cover and you would need to ensure that your premiums are paid monthly to keep the policy active and the life cover active.

  • What is a life insurance beneficiary?

    This is the person who will receive the benefit i.e. the cover amount when you pass away. During the application stage you will be given the opportunity to nominate your beneficiary. You can however change your beneficiary at any stage while your policy is active. It is advised that you have the ID number or date of birth of the beneficiary/ies that you select, to ensure that when it comes to claiming stage, that the right person/s are being paid.

    Dependent on the insurance company, you are able to add multiple beneficiaries to a life insurance policy. If you consider doing this, you should also keep in mind what percentage of the cover amount you would like to leave to each beneficiary. E.g.: 50% to person A and 50% to person B.

    It is important to let your beneficiary/ies know that you have a life cover policy and for you to keep a copy of the policy in a safe place, so that should something happen to you, your family or beneficiary will know who to speak to and the procedure to follow

  • When does my life cover begin?

    Your membership starts on the first of the month after receipt of your first premium and your life cover starts after the relevant waiting period has expired. Contrary to funeral cover where general waiting periods apply for natural death, life insurance covers you for both natural and accidental death from the day your first premium is received. The waiting periods that apply when it comes to life cover are generally associated with suicide. Herein, should the principal member commit suicide within a certain period, the cover will not be paid out. Other examples of waiting periods could be surrounding pre-existing (medical) conditions.

    It is always advisable that you familiarise yourself with the policy schedule provided to you by your insurer, as this is the contract that your cover is based on. The policy schedule provides you with all the information relating to your cover and will highlight the relevant waiting periods associated with the life cover that was provided to you by the insurance company, based on your risk profile.

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