There are many South Africans who work for companies who offer compulsory Group Life Cover. These companies feel a sense of responsibility towards their employees as it will provide capital or income to dependants in the event of death.
Other individuals are only covered in their personal capacities as their employers do not offer these benefits, making it entirely their own decision. Here are a few facts of each:
- Individual health underwriting (might not get cover if unhealthy)
- Can become expensive due to individual variables
- Not much flexibility or choice
- Underwritten as a group (no individual underwriting, very beneficial if you are unhealthy)
- Tends to be cheaper because the risk is divided up and shared as a group
It is fully acceptable to have both as each have their own advantages and drawbacks. It is necessary to take both into account when doing planning to ensure you are not over- or under insured.
It is essential to fill the gaps if you change employers and will not have Group Life Cover. In this case it is also possible to transfer your current benefits to your own name, although that will require personal health and financial underwriting.
Ruvan J Grobler RFP™