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What Life Insurance will Cost You in South Africa

If you have someone who relies upon you for a living, then you need life insurance.
It is the only way to immediately provide a lump sum of money that they will need, should you no longer be around.

Are you looking for life insurance, but worried about the cost?

Life insurance can be surprisingly affordable, and it's one of the best safety nets you can give your family.

Life insurance isn’t a one-size-fits-all product.
The premium you’ll pay depends on several personal and “type of policy” specifics like your age, health, and other “type of policy” factors,

Here are some general guidelines:

The Factors Influencing Life Insurance Premiums

young single life1. Age plays a massive role.
The younger you are, the cheaper your premiums.
Why? Because insurers see younger people as less of a risk—simple as that.

On average, R 1 mil life insurance for someone in their:
20s is around R 150 pm
30s is around R 220 pm
40s is around R 500 pm


2. Health pays an important role in determining premiums.
If you have any pre-existing conditions or lead an unhealthy lifestyle, you can face higher premiums.
In fact, smokers can pay up to double what non-smokers pay.
This is because smoking increases the risk of health issues, leading to higher insurance costs.

Conditions like high blood pressure, diabetes can substantially raise your premium.

Those who lead a healthy lifestyle, engage in regular exercise, and maintain a balanced diet benefit from lower premiums.


occupation risk3. High Risk Professions and jobs that involve physical labour, like construction, mining, or working in hazardous environments, with an increase in of accidents happening, result in higher premiums.
On the other hand, desk jobs or office-based work have lower premiums as the chances of accidents or injuries are greatly reduced.

The greater the risk, the higher the price.



4. Sum Insured or Amount of Cover affects your premiums.
A higher amount of cover means that the insurer takes on more risk, resulting in higher premiums.
A policy with a R1 million payout will cost more than a policy with a R500,000 payout.

It is necessary to balance the amount of cover with your budget and financial goals, making sure you have enough to cover debts, mortgages, and future living expenses.

How much cover do you want, as the more you want to leave behind for your family, the more you’ll pay.
It is a simple balancing act between the sum insured you need and your budget.


policy term5. The Term of the Policy is another factor that influences cost.
Life policies can either be term-based or whole life.

Term policies cover you for a specific period, usually between 10 to 30 years and are more affordable.
Once the term ends, the policy expires, and you will no longer have cover unless you renew it, often at a higher rate.

Whole life policies are more expensive, but offer cover for your entire life as long as premiums are paid.


6. Type of Cover from simple life insurance to policies that include added benefits (like disability or dread disease cover) will naturally have higher premiums.
Basic life cover is obviously less expensive.


7. Gender pays a role, and women pay lower premiums than men due to a longer life expectancy, where the cost of the risk is calculated over a longer time.


8. Lifestyle Choices where you participate in high-risk activities (e.g., extreme sports) can increase premiums, as the risk of a claim occurring is higher.

young single lifeSo, How Much Is Life Insurance in South Africa?

Now that we’ve covered the factors influencing the cost of life insurance, let’s talk numbers.
On average, monthly life insurance premiums in South Africa can range from R200 upwards.
These numbers are just estimates, and actual premiums can vary based on specific insurer rates.

It is important to note that life insurance can be affordable, even for comprehensive cover!

Here’s a table that illustrates average monthly premiums for different ages and R 1 mil sum assured.
These are for an office-based profession, non-smoker, married with good income.

Age Male Female
30 200 137
35 200 148
40 240 170
45 300 200

Smokers or individuals with pre-existing health conditions can expect to pay 50% to 100% more than non-smokers or those in good health.

Tips to Lower Your Life Insurance Premiums
Paying a lower premium doesn’t mean you’ll get less protection.

Here are tips to reduce your costs:

What is the cost?

How do you know that this is not the last life cover offer you will ever read?

whatsapp083 655 2164


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YMYL: YOUR TRUSTED, QUALIFIED ADVISOR
peter pyburnPeter Pyburn - Authorised Financial Services Provider, fully licensed to render financial services since 1991. Death and Disability Planning; Retirement Planning; Investment Planning; Healthcare and Estate Planning.

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Last update: November 3, 2024