Accidental coverAccidental cover provides a lump-sum payout to protect your family’s financial security in the event of your death or disability after an accident.
This page has the following sections: 1. Benefits available in an accidental policy 2. A chart showing the leading causes of accidental death claims 3. Real life example of how clients have benefited from accidental cover 4. Who should consider an accidental policy 5. General terms and conditions of accidental cover
|
|
|
|
Leading causes of accidental death claims
|
The first chart on the right shows many deaths in South Africa are due to accidents, crime and violence. The chart on the far right shows the leading causes of accidental death claims. Motor vehicle accidents account for the bulk, 66% of all accidental death claims.
Courtesy: Old Mutual |
|
|
How our clients have benefited from accidental cover
Mr Foster* was shot during an armed robbery and became a paraplegic due to injury. He submitted a disability claim under his various policies with Sanlam, which included Accidental Injury and Dread Disease cover. Mr Foster received an additional payout under his disability cover. The total amount paid out was |
Further information on Accidental policy
Tax consideration |
Your accidental policy premiums are not tax deductible. In the event of a claim, the money you receive is tax free.
|
Transfer of wealth |
You may nominate one or more beneficiaries on your accidental policy. In the event of your accidental death, the sum assured is paid out to your beneficiaries. Your beneficiaries do not have to wait for the process of winding up your estate in order to get the money.
|
Funeral benefit |
Accidental cover typically includes an upfront benefit, in an effort to support your nominated beneficiaries with funeral arrangements in the event of your accidental death, With this benefit, R50,000 will be paid within 48 hours of submitting a valid death certificate.
|
Regulatory protection |
Life insurance companies in South Africa are regulated by the Financial Services Board. South Africa enjoys excellent financial services regulations and supervision, giving you the confidence that a life insurance company will pay according to the insurance contract you have signed up.
|
Medical underwriting |
Unlike a life insurance policy, an accidental policy does not require medical underwriting.
|
Benefit expiry |
Accidental cover typically terminates at age 65. This means that after age 65, you will not enjoy the cover and you will not be paying premiums.
|
Who should consider investing in an accidental policy?
Anyone and everyone should have an accidental policy, as accidents and violent crimes are a reality in South Africa.
Furthermore, you should invest in an accidental policy if:
- You have financial dependants, people that are financially dependant on you. For example, you have your family to look after.
- You have financial obligations, such as a home loan, vehicle finance, personal loan.
- you want to insure the breadwinner of a household, so that in the event of his untimely death, you will have money to help your family financially.
- You do not want to undergo medical tests as required by a life insurance application.
- Your application for life cover has been declined due to medical reasons. An accidental policy does not require medical underwriting, so it still provides you with cover in the event of accidental death or disability.
Furthermore, you should invest in an accidental policy if:
- You have financial dependants, people that are financially dependant on you. For example, you have your family to look after.
- You have financial obligations, such as a home loan, vehicle finance, personal loan.
- you want to insure the breadwinner of a household, so that in the event of his untimely death, you will have money to help your family financially.
- You do not want to undergo medical tests as required by a life insurance application.
- Your application for life cover has been declined due to medical reasons. An accidental policy does not require medical underwriting, so it still provides you with cover in the event of accidental death or disability.
How much accidental cover should I have?You should consider:
- How much money you currently have - The amount of income your dependants will need if you can't provide for them anymore - If you are married, how much your spouse will need - The outstanding loan amounts you need to settle - Your future needs. We provide a life and disability cover calculation template on the right, for you to view and print out to use. |
|
What is the maximum cover amount?
Some life insurance companies offer up to R2,000,000 accidental cover, while some offer up to R5,000,000.
The minimum accidental cover amount starts as little as R100,000.
The minimum accidental cover amount starts as little as R100,000.
What is the minimum premium?
The minimum premium is R200 per month. So an accidental policy is affordable.
What if I don't pay my premium?
If you miss a premium payment, the life insurance company will try to debit your account again later in the month, or debit this month and next month's premiums next month. If you miss the premium payment again next month, the life insurance company will debit 3 months' premiums the following month. If the debit order is again unsuccessful, the life insurance company will have no choice but to terminate your policy.
After your policy is terminated, for a limited period of time, the life insurance company will allow you to reinstate your policy if you manually pay all the outstanding premiums into the insurance company's bank account, provide the proof of payment and complete a satisfactory declaration form.
After your policy is terminated, for a limited period of time, the life insurance company will allow you to reinstate your policy if you manually pay all the outstanding premiums into the insurance company's bank account, provide the proof of payment and complete a satisfactory declaration form.
Our product providers
As an independent financial planning practice, we have contracts with the following product providers in order to offer you a product that suits your needs:
Hollard, Momentum, Old Mutual, Sanlam
Hollard, Momentum, Old Mutual, Sanlam
Our preferred accidental cover providers
We have done the necessary due diligence in selecting the following preferred providers:
Old Mutual
|
We select Old Mutual as our preferred provider for the following reasons:
1. Reputable global financial services group 2. Financially sound 3. Easy to understand product design 4. Competitive premium 5. Easy to add a savings component with minimal amount (R100), giving client cash values 6. Easy electronic application process More info: Old Mutual Greenlight Brochure |