Frequently Asked Questions
What is Life Insurance?
Life Insurance is cover that pays out a sum of money if the insured person dies. Life Insurance is paid for by a monthly fee (called a premium) and, as with any insurance, you are only covered as long as you continue paying this premium.
Why do I need Life Insurance?
If the people you love won’t have money when you die, you probably need it. They can use the cash to settle any debts and pay for things your monthly income used to cover, such as rent, school fees and food.
What is the difference between a Funeral Plan and Life Insurance?
They are similar. Funeral plans are life insurance designed to cover the costs of a funeral. They pay out very quickly on death so that the money is available when your family needs it. Funeral plans usually cover more than one person. For example, Simply Funeral plans cover you, your spouse and any number of children under the age of 21. Ordinary life insurance provides a larger lump sum to your beneficiaries so that they are taken care of when you’re not around. While funeral plans are certainly important, you should also think about what will happen to your family after your funeral.
Why don’t more people have Life Insurance?
Most people don’t like to think about dying or being injured, and don’t think it would ever happen to them. For many of us, it’s difficult to make ends meet every month even without this additional cost. Life insurance protects your dependents in the event of your untimely death or disability. Simply offers you protection, quickly, simply and affordably.
What is Disability Cover?
Disability cover pays out if you suffer an accident or illness that limits your movement, senses or activities, and are therefore unable to continue working. There are different kinds of disability cover available. One type, often called “Physical Impairment Cover” pays out on pre-defined injuries, regardless of whether it actually impacts on your ability to work. For example, if you become paralysed, or blinded, the cover will pay out. You don’t need to be employed to be eligible for cover. Another type of cover, “Occupational Disability”, relates specifically to your ability to do your job, or another similar job. More types of illnesses and injuries are covered, but these have to affect your ability to work, and you have to be employed in order to claim.
Why do I need Disability Cover?
Becoming disabled can create a huge financial burden. Not only are you unable to work and earn a salary, but you’ll incur many additional expenses due to your disability – such as wheelchairs, changes to your house or costs of transport and additional medical bills.
What is accidental-only cover?
Accidental-only policies only cover you if you or a member of your family die or are disabled as a result of an accident. This means death or disability is caused by a sudden and unexpected event that happens at a clear time and place. An accident is usually something violent - something external and outside your control that happens TO you. If you die or are disabled as a result of illness, you are NOT covered. Accidental-only cover is therefore more limited, and normally appropriate only if you do not qualify for full cover due to existing health problems.
How much Life Insurance do I need?
There is no simple answer to this. Ideally you should have enough life insurance to pay off any debts you leave behind, and to replace the income you were contributing to the family (for as long as you think they need to get back on their feet).
How are my premiums calculated?
A number of factors will determine how much you pay every month (your monthly premiums). These include the amount of cover you will need, as well as your age, gender, income, smoking habits and how healthy you are at the time of taking out the insurance.
Can my premiums change?
Yes. Your premiums will increase by 5% every year to keep up with inflation. However, the Insurer has the right to increase your premiums at any time, as long as you are given 30 days’ notice.
What do I get back if I cancel my policy?
You don’t get any refund if you cancel your policy. The premiums are used to pay claims, they are not invested.
How long will my cover last?
Your policy continues for as long as you pay your premiums, or until a claim is paid in the event of disability or death.
What happens if there is no money in my account on the day of the debit order?
We will contact you to arrange another debit order.
What happens if I don’t tell the truth about my health?
It’s very important that you answer the questions honestly. If you are found to have given incorrect information, the benefit may not be payable, and your premiums would have been wasted.
What isn't covered?
If you commit suicide or harm yourself on purpose, then the benefit will not be paid. If you are killed or harmed while involved in illegal activities, riots, wars or terrorism, then no benefit will be paid. See your policy documents for full details of what is not covered.
How long will it take to receive payment?
Payment will be done as soon as possible, but your dependents need to provide all the necessary documentation to process the claim. Funeral plan benefits should be paid within 24 hours of receiving all claim documentation.
What is a waiting period?
Simply products have a 6-month waiting period. During the waiting period, if you become sick and die, all the premiums paid will be refunded. If you have an accident and die, the full benefit will be paid. At the end of the waiting period, you will be fully covered regardless of how you die (Subject to exclusions, which are covered in your policy documents).
What is a beneficiary?
A beneficiary is the person who will receive the benefit. Often this would be the husband or wife of the person who is covered. You need to tell us who you want the beneficiary to be. If we don’t know who the beneficiary is, it will take longer for the money to reach your family. You can have more than one beneficiary, and you can change your beneficiary at any time.
How do my beneficiaries claim?
For any policy claims please contact Simply on 021 045 1513 or send an email to email@example.com. We will advise what information we need to complete the process. Make sure your beneficiaries are aware of the Simply policy you have, and know how to contact us if they need to.
Can I take out a policy that pays out on somebody else’s life?
Yes, you can. However, there are rules around who can be the policy owner as well as the beneficiary. Where you take out a policy on someone else’s life and you are also the beneficiary there would need to be a good reason why you would need to receive a benefit if the insured person dies. For example, a husband or wife can insure the other’s life or a child can insure his parent’s life. The reason for this rule is to protect the insured person from foul play.
Does it make any difference if I buy online, or talk to an agent?
The product you apply for will be the same whether you apply for it on our website or by talking to one of our agents.
How does a body repatriation benefit work?
This benefit is normally offered as part of a funeral plan policy. On top of the cash benefit you receive on the death of a family member covered under the policy, you will be able to make use of additional services (up to a certain limit). The main assistance will be to locate the body (if needed) and move it to where the burial is to take place. Simply Funeral Plans sold after a certain date include this benefit, please check the T’s&C’s in your policy document if you are uncertain.