What Does Life Insurance Cover?

Life insurance in South Africa gives your family financial protection during life’s unexpected events—such as illness, disability, or death—so they can focus on what matters most without facing financial hardship.

Key Risks Covered by Life Insurance

Leading South African life policies typically include the following:

• Life (Death) Cover: Pays a lump sum to your beneficiaries if you pass away during the policy term.
• Disability Cover: Covers you if you're permanently disabled and unable to work.
• Dreaded (Critical) Disease Cover: Pays out if you’re diagnosed with a serious illness like cancer or heart attack.
• Functional Impairment Cover: Helps if you can’t perform essential daily tasks.
• Accident Cover: Offers lump-sum protection for injuries from accidents.

The Benefits of Life Insurance

Each of the “3 D’s”—Death, Disability, Disease—can bring financial stress.
Here’s how a policy can help:

• Covers medical bills when medical aid is insufficient.
• Replaces lost income if you cannot work due to illness or injury.
• Protects dependents by covering loan repayments and living costs.
• Funds funeral expenses without burdening your family.

How Life Insurance Complements Medical Aid

Medical aid covers medical costs, but doesn’t provide a safety net for income or long-term bills if you’re disabled or terminally ill. Life insurance policies fill those gaps with lump-sum payouts.

Common Policy Add-Ons

• Accidental Death Benefit: Extra payout for death by accident.
• Critical Illness Benefit: Protects against major illnesses.
• Disability Income Benefit: Offers monthly income if disabled.
• Premium Waiver Benefit: Covers your premiums if you become disabled.

What’s Not Covered (Exclusions)

Be aware of policy exclusions, including:

• Suicide, generally within the first 1–2 years
• Pre-existing medical conditions or hazardous activities
• Lapsed policies due to missed payments

Claim Process & Payout

Payouts are usually paid as a lump sum once medically certified. Many dread-disease or accelerated benefits may be paid out early if qualifying conditions arise.

Choose the Right Policy for Your Needs

Selecting the right life policy requires assessing your life stage, income and dependents. Look for:

• Sum assured adequate to cover debts, living costs, and schooling (experts recommend 8–10× your income)
• Appropriate cover & benefits for peace of mind
• Clear understanding of exclusions and waiting periods

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