FREQUENTLY ASKED QUESTIONS
Life Insurance
What is Life Cover?
Life cover is insurance that pays a sum of money to your family/ beneficiary in the event of death as a result of natural or unnatural causes. It is a promise made by your insurer to pay those who depend on you a sum of money upon your death. In return, you make regular payments called premiums.
What is the difference between life (with/without injury benefit) and accidental death cover offered by Vodacom Life?
Life:
This benefit pays out a lump sum in the event of the life assured’s death. Only one life is covered under each policy. The life assured is the premium payer.
The policyholder can choose to add an injury benefit to the life product.
Injury:
This benefit can be added to the life product. It is important to note that the injury benefit is not a stand-alone product, but rather an accelerator that may be added to the life product. It is an optional add-on to the life product, for which an additional premium is paid.
The injury benefit pays out a lump sum in the event of the life assured suffering from an injury or trauma resulting in:
- Amputation,
- loss of use of limbs and fingers,
- burns,
- facial disfigurement,
- paralysis,
- a coma,
- visual loss,
- hearing loss, and
- loss of speech.
Upon the earlier of injury or death, a lump sum benefit will be paid. Where a covered injury event pays out less than 100% of the lump sum benefit, the remainder of the lump sum benefit is available for further benefit payouts, either on further injury or death, whichever occurs first. Once 100% of the lump sum benefit is paid out, the policy ceases (i.e. the lump sum benefit does not reinstate).
Note that the maximum cover for injury is R1 million rand. The maximum life cover is R1.5 million rand.
Accidental Death:
This benefit pays out a lump sum in the event of the life assured’s death due to unnatural causes.
What is underwriting?
Underwriting is the process used to assess the riskiness of lives applying for cover and hence determine the cost of providing coverage. There are several factors that insurance companies may use to determine if you qualify for cover and to decide how much to charge you for the kind and amount of coverage you want to buy.
How is my premium calculated?
Premiums are calculated using several underwriting factors to determine your risk profile.
Namely:
- Your age,
- your gender,
- your smoker status,
- your income and education level, and
- your health (for example, some pre-existing health conditions will result in additional loadings being added to the base premium).
In addition to this, the premium paid will also depend on the amount of cover you choose.
Is there a limit on the amount of cover I can get?
Cover is limited to a maximum amount of R1.5million and a minimum of R100 000.
Will I be able to increase my cover?
Yes, this policy enables the policyholder to increase their cover at any time.
Should the policyholder decide to increase their cover, further underwriting may be required except where this is every three years on the policy anniversary or after a significant event, namely:
- The marriage of the life assured
- a child being born to or legally adopted by the life assured
- the life assured purchasing a home; and/or
- the life assured entering into a business or taking an increased interest in an existing business
Can I amend the policy any time?
Yes, while your policy is active you can apply to increase/decrease your cover or add additional benefits (for example, you may add an injury benefit to your life cover).
Call number 082 124 and press option 3 and the consultant will guide you through the process.
Call centre operating hours: Monday-Friday, 08:30-17:00.
When will my cover start?
Your cover begins as soon as we have collected your first premium. You can choose any day of the month as your premium collection date.
How do I claim?
- Report the death at Home Affairs in order to receive a Death Certificate.
- Gather all the necessary documentation (for e.g. copy of death certificate, copy of IDs for deceased and beneficiary, proof of beneficiary banking details, etc.) and complete the required forms.
- Submit the forms to Vodacom Life via email, fax or post.
- In the event that your beneficiaries need to claim, they should use the following contact details:
- Tel: 082 124 (Option 3)
- Fax: 011 546 8444
- Email: [email protected]
Call centre operating hours: Monday-Friday, 08:00- 16:30
Why should I choose Vodacom?
Vodacom Life policy pays out a lump sum after the death of the person noted as the Life Assured. You can choose the level of life cover that best suits your needs and pocket.
- Vodacom has simplified underwriting, with no medical tests. The online application process takes place in real-time, it’s simple and paperless.
- Apply via the website or your cellphone.
- No extensive medical examinations required.
- Load as many beneficiaries as you like.
What do I do if for any reason I need to complain?
If at any point you are unhappy with our financial services or products, first give us the opportunity to resolve the matter as quickly as possible by using the following contact details:
- Call: 082 124
- Email: [email protected]
- Address: Private Bag X9904, Sandton, 2146
Are there exclusions?
Yes, most life cover products do have exclusions. You will need to look at your specific policy to see what has been excluded. A few examples of what constitutes exclusion and may result in your claim not being paid out are:
- Knowingly not disclosing certain information required on the form – for e.g. if you are aware of a medical condition but don’t disclose it when asked.
- If death resulted from suicide.
- If death occurred from natural causes within a predefined time period.
- Participation in civil commotion, insurrection, riot, usurpation of power, terrorism or acts of terrorism.
What is a beneficiary and why do I need one?
Is a person/persons nominated by you who will receive the proceeds of your life insurance policy when you die.
Without a valid beneficiary, the life insurance proceeds will be paid into your estate. It is important to note that the proceeds paid into your estate will not be available immediately (in fact, this may take up to several years while the legal process is being finalised). In addition to this, once the insurance proceeds are paid into your estate, anyone you owe money can claim against this.
What is the difference between funeral and life insurance cover?
There are few key differences between life insurance and funeral insurance.
Life insurance
- You take out life insurance on your own life, to secure the financial wellbeing of your loved ones in the event of your death.
- The life insurer issues a payment to your nominated beneficiary.
- The level of cover is usually significantly higher than funeral cover, and hence is useful if the need for the insurance is to take care of your dependens well into the future.
Funeral Cover
- Funeral cover insures you and your immediate or extended family on the same policy and pays out when a death occurs and funeral and other services need to be arranged.
- The life insurer issues payment to your nominated beneficiary on your death, which they can use to cover funeral expense.
Note that the lump sum cover amount paid on both life and funeral insurance is tax-free.