Flexibility makes insurance policies fit all

FLEXIBILITY is the cornerstone of Old Mutual’s policy offerings as it allows clients to choose insurance cover according to their individual circumstances.

This is the explanation Old Mutual’s general manager of retail mass market, John Hesekiel, gives prospective clients who are concerned about premium costs.

“One of the most common concerns for not taking out life insurance is cost,” Hesekiel says, adding that life insurance policies can, however, be drawn up to meet personal needs.

He says a policyholder can decide on the cover required, or a premium they can afford, and then pay based on the policy’s benefits.

“Old Mutual has an offering that allows you to choose the amount you would like to be covered for. Your monthly premium is calculated based on the size of this amount, and risk factors such as your age and lifestyle habits. Consumers are at liberty to revise a life insurance policy as they reach different life stages.

“Our aim is to ensure positive futures every day by bridging the gap between customers’ resources and their financial needs. Financial inclusion remains one of our key focus areas, because through sharing information, we enable people to make better long-term financial decisions,” he says.

Hesekiel says financial inclusion is at the heart of Old Mutual’s business strategy.

“The question to be asked is whether it is necessary to have both life insurance and funeral insurance policies to achieve personal long-term financial stability,” he says.

According to Hesekiel, consumers should consider having both policy types as both cater for important but different needs.

“While life insurance and funeral insurance cater for different needs, it’s important to understand that none is more important than the other. Life insurance protects families against the financial hardships that could arise after someone has passed away.

“This ensures that those left behind benefit from a legacy – the chance to afford what they need to keep their lives intact. Life insurance can also help pay off expenses, settle outstanding debt, and ensure that children receive the education they deserve,” Hesekiel says.

Funeral insurance pays out a lump sum once all the necessary documents have been received, he says.

Once all funeral expenses have been covered, the family is often not as financially secure as it was before the passing of a loved one.

This can be especially challenging if the family has lost a breadwinner.

“That is essentially the difference between funeral insurance and life insurance. Life insurance has one aim: long-term security, and looking after your family’s financial needs after you have passed,” Hesekiel says.

He says a solid plan is held up by the following four pillars: cover for immediate expenses (funeral insurance), cover for large expenses (life cover or accidental death cover, if the risk of dying in an accident is high or you are unable to take life cover), cover for ongoing expenses (life income cover), and cover for estate duty (last survivor cover).

“The best way to decide this is to get professional help. A qualified financial adviser will do an assessment at no cost and suggest the best way to address your needs.

“The benefit of using an adviser is that they can do all the necessary assessments to ensure you are adequately covered, while also ensuring you only pay for the cover you need, and are not paying for benefits that are not relevant to you,” Hesekiel says.

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