Clear, simple explanations of common insurance terms to help you better understand your cover.
A benefit whose payment reduces the remaining cover available under linked benefits on the policy. For example, a Critical Illness payout may reduce the remaining Life cover available. This is in contrast to a stand-alone benefit, whose payment does not affect any other benefit on the policy.
Death caused by a sudden, external, unexpected event - like a car accident - rather than by illness or natural causes. The event happens at a clear time and place and is usually something violent, external, and outside of your control.
Disability caused by a sudden and unexpected event that happens at a clear time and place. An accident is usually something violent, external, and outside of your control.
A condition that requires an employee to be at work - either on site or off site with permission - and able to attend to all their normal duties on the day that group insurance cover is supposed to start or be increased.
The percentage by which your cover amount goes up each year, usually on the anniversary of your policy. This is often intended to keep your cover keeping pace with inflation so R500,000 today still means R500,000 worth of real-world protection in ten years' time.
The percentage by which your monthly premium goes up each year, often alongside the annual benefit increase. Both happen on your policy anniversary.
The person (or people) you choose to receive your payout when you pass away. With a Simply policy you can name more than one, split the payout however you like, and change your choice whenever you need to.
A party authorised by the insurer to perform key administrative functions on the insurer's behalf, such as issuing and administering policies and managing the claims process. Simply is a binder holder for Hollard Life Assurance.
A benefit often offered as part of Funeral or Life cover that provides for the transport of the deceased's mortal remains to their place of burial. Cover typically includes repatriation within South Africa and may also include the option of repatriation to or from a Southern African Development Community (SADC) country.
A registered financial advisor who can recommend products from different insurers and help you choose cover that fits your Life. Brokers are independent - they work for you, not for one insurer.
Ending your policy. You can cancel at any time. If you cancel within the first 30 days of policy commencement (the cooling-off period) and haven't claimed, you'll get your premium back. Your policy may also be cancelled by your insurer if you missed your premium payment after the applicable grace period has elapsed.
An optional benefit available on certain products that refunds a portion of your total premiums paid back to you at regular intervals. Criteria for the payout generally include premium payments being up to date and no claim having occurred.
When you sign over the rights to your policy to someone else - usually a bank, as security for a home loan. If something happens to you, the bank receives the payout to settle the debt first.
The request made to your insurer to pay out on your policy - for example, a Funeral claim after a loved one passes away, or a Disability claim if you can no longer work.
A person submitting a claim on an insurance policy.
The day your cover officially starts. This is the date on your policy schedule, and it's the day from which your premiums are due.
A 30-day window at the start of your policy during which you can change your mind, cancel, and get your premium back - provided you haven't claimed. It's your safety net while you read the fine print.
The rand value of insurance you select for each benefit type, representing the maximum amount payable to you or your beneficiaries in the event of a valid claim. The cover amount is set at inception. In the insurance industry, cover amount may also be referred to as sum assured.
The conditions that you must meet to be covered under a policy. These typically include age requirements, employment type, residency status and, for group cover policies, being actively at work on the date cover commences.
A benefit that pays out a lump sum if you're diagnosed with a serious illness like cancer, a heart attack, or a stroke. The money is yours to use however you need - medical bills, time off work, adapting your home. Sometimes called "dread disease" cover.
A secure debit order system that asks you to confirm a new debit order with your bank before it goes through. It's an extra layer of protection against unauthorised deductions. You'll usually confirm it once, via USSD or banking app, when your policy starts.
The period between when an insured event happens and when benefits start being paid. This concept is often used for Disability benefits to confirm that you will not recover before benefits are paid.
A person who relies on you financially - typically a spouse, partner, child, or parent. Many of Simply's policies cover extended family members as well.
An insurer you can buy from directly - online or over the phone - without needing to go through a broker. Simply sells both directly and through brokers. The insurer behind every Simply policy is Hollard Life Assurance.
A benefit that pays out if you become disabled resulting from bodily injury, illness or disease. Some Disability benefits provide cover for specific events, such as the loss of a limb, and others for the inability to perform your job. Depending on the product, it can pay a lump sum or a monthly income, and there may or may not be a requirement for the Disability to be permanent.
Everything you own at the time of your death - property, money, possessions, investments. Your estate is wound up by an executor according to your will, or according to the law if you don't have one.
A situation your policy specifically doesn't cover. Exclusions are listed in your policy document and include acts such as participation in illegal activities, refusal of recommended medical treatment, or participation in hazardous pursuits. We'll always be upfront about what's excluded - no surprises at claim stage.
A relative who isn't part of your immediate family - like a grandparent, aunt, uncle, niece, nephew, cousin, or in-law. Simply's Flexi Funeral Cover and Flexi Family Cover let you include extended family on your policy.
The Financial Advisory and Intermediary Services Act - the South African law that governs how financial products (like insurance) can be sold and advised on. It's why brokers have to be registered and qualified before they can help you.
The Financial Intelligence Centre Act - the law that requires insurers to verify who you are before selling you a policy. It's the reason you'll be asked for your ID and proof of address.
The Financial Sector Conduct Authority - South Africa's regulator for financial services. The FSCA makes sure insurers treat customers fairly and do what they promise.
Any company or individual authorised by the FSCA to give financial advice or sell financial products. Simply is FSP 47146. Every broker you deal with should have their FSP number on their paperwork.
A benefit that pays a lump sum on the death of a covered person to assist with Funeral and related expenses. Cover can be extended to include your spouse, children, and other family members. The amount payable may vary depending on the age and relationship of the covered person to you.
The extra time you have to pay a missed premium before your policy lapses. It gives you breathing room if a debit order bounces - for example, because your salary came in late. If you pay within the grace period, your cover stays active.
Any unusually dangerous activities that you engage in regularly, not occasionally. Examples include, but are not limited to: big game hunting, boxing, mixed martial arts, outdoor rock climbing, skydiving, motor and boat racing, as well as white water rafting.
The Life insurer that underwrites Simply policies. Hollard is South Africa's largest privately-owned insurance group and has been operating for over 45 years. Simply distributes the product; Hollard guarantees the cover.
The date on which cover on your policy begins. This is the same as the commencement date and is the date from which any waiting periods, pre-existing condition exclusions, and premium obligations are calculated.
A policy is "in force" when it's active - premiums are up to date and you're fully covered. The opposite is "lapsed".
A real financial or emotional stake in the person being insured. You automatically have insurable interest in your own Life, your spouse, your children, and your parents. It's a basic requirement of insurance policies that stops strangers from taking out policies on people they don't know.
The person whose Life is covered by the policy. When the insured person passes away or suffers an event covered by the policy, a benefit is paid out. There can be multiple insured persons covered under a single policy.
The company that guarantees to pay your claim. For Simply, that's Hollard Life Assurance.
A policy that's no longer active because premiums weren't paid, even after the grace period. A lapsed policy doesn't pay out if you claim. You can usually reinstate one within a set window - just speak to us.
The person whose Life is being insured - i.e. the person whose death, illness, or Disability would trigger a payout. Usually this is you, but you can own a policy on someone else's Life if you have insurable interest.
Insurance that pays out a lump sum to your beneficiaries if you pass away. The money is theirs to use however they need - paying off debt, covering school fees, replacing your income.
A category of insurance that provides cover over an extended period, typically for Life, Disability, Critical Illness, and Funeral events. Long-term insurance products are regulated under the Long-Term Insurance Act and are underwritten by licensed Life insurers, such as Hollard. This is in contrast to short-term insurance, which covers property and liability risks over shorter periods.
The total amount of cover being paid out in one payment, rather than the cover being paid out over time in smaller regular payments.
Anything about your health, job, or lifestyle that affects your insurer's decision to offer you cover - and at what price. You're required to disclose this honestly at application. Leaving things out (or getting them wrong on purpose) can void a future claim.
A beneficiary on an insurance policy who is under the age of 18 years.
Death or Disability that occurs from natural causes such as disease or old age, rather than from an act of violence or an accident.
Your closest living relative. Where no beneficiary has been nominated, or where a nominated beneficiary has passed away before you, the benefit may be paid to the insured person's next of kin. The order of priority is typically the spouse first, followed by children, then parents.
Another word for beneficiary - the person you've nominated to receive your payout.
The age at which you would ordinarily retire as defined in the employee's employment contract, or in standard company policy. Where this is not defined, it is assumed to be age 65.
A Disability that prevents you from doing your specific job (called own occupation Disability) or any other suitable job taking into consideration your education, skills and work experience (called own or similar occupation Disability). For example, a surgeon who loses fine motor control in their hands might be occupationally disabled under an own occupation Disability benefit even if they can technically still work in other roles. Occupational Disability is part of Simply's Flexi Staff Cover.
An independent office that resolves disputes between consumers and insurers. In South Africa, Life insurance complaints go to the National Financial Ombud Scheme. It's free to use and their decision is binding on the insurer.
The contract between you and your insurer. Your policy sets out exactly what you're covered for, what you're not, how much the insurer pays out, and under what conditions.
The date each year that marks another year of your policy being in force. It's the day any annual benefit and premium increases take effect.
The personalised summary of your policy - your name, your cover amounts, your premium, your beneficiaries, your start date, and any specific exclusions that apply to you. Keep it somewhere safe. The policy schedule should be read alongside the policy document.
The person who owns the policy and is responsible for paying the premiums. Usually this is also the Life assured, but not always.
The Protection of Personal Information Act - South Africa's data privacy law. It sets out how insurers (and everyone else) are allowed to collect, store, and use your personal information.
A medical condition you had before taking out your policy. Some conditions may be excluded, others covered after a waiting period - it depends on the condition and the product. We'll tell you upfront.
The monthly amount you pay for your cover. Premiums must be paid on time to keep the policy in force.
A product feature under which premiums are no longer required for a specified period following a qualifying event, while cover continues uninterrupted for the remaining insured persons on the policy.
Reactivating a policy that has lapsed. If you missed premiums and your cover lapsed, you can usually get it back within a pre-defined window period by catching up on what's owed and, sometimes, answering a few updated health questions.
A category of insurance that provides cover over shorter periods, typically for property, vehicles, and liability risks. Short-term insurance is underwritten by licensed short-term insurers and is regulated under the Short-Term Insurance Act. This is in contrast to long-term insurance, which covers Life, Disability, Critical Illness, and Funeral events.
A benefit that pays out without reducing your other cover. Opposite of an accelerated benefit. Stand-alone benefits cost more but leave your Life cover intact after a claim.
A benefit payable on the birth of a stillborn baby to you or your spouse, provided the pregnancy had reached a minimum specified period. The benefit is paid as a fixed lump sum and is offered as part of the Funeral Cover benefit.
The amount of cover you have - the maximum lump sum that gets paid out if you claim. Also called the "cover amount" or "benefit amount".
A period of time that you must survive after a qualifying event before becoming eligible to claim a benefit. Where a survival period applies, you must remain alive for the specified period before the benefit is paid.
A set of principles that regulated financial service providers have to follow - covering everything from clear product information to fair handling of complaints and claims. It's one of the rules of the game in South African financial services.
A benefit that replaces part of your salary if you're temporarily unable to work because of illness or injury. It pays a monthly income until you recover or the benefit period ends and is subject to a deferred period before payments begin. Available as part of Simply's Flexi Staff Cover.
Life insurance that covers you for a fixed period - for example, 20 years - rather than for the rest of your Life. It is cheaper than whole-of-Life cover however if you outlive the term, the policy ends with no payout.
A benefit that pays out your Life cover early if you're diagnosed with a terminal illness and have a limited Life expectancy. It is designed to give you financial breathing room to focus on what matters.
Cover where the policyholder and the main insured person are not the same person.
The insurer that carries the risk - the company that pays out if you claim. For Simply, that's Hollard Life Assurance.
The process of assessing your application to decide whether to offer you cover, at what price, and with what (if any) exclusions. This process often includes asking health questions and, for some insurers, requesting medical tests to be performed. At Simply, most of this happens in the background using the answers you gave us - no medicals, no paperwork.
A short period at the start of your policy during which certain claims can't be paid yet. It is common on Funeral Cover (usually 6 months for natural causes, but accidental death is covered from day one) but may also apply on other benefits. Any waiting periods on your Simply policy are clearly stated upfront.
Cover that lasts your entire lifetime, rather than ending at a set age. Whenever you pass away, your beneficiaries are paid out.
This glossary is for informational purposes only. Always refer to your policy documents for the exact terms applicable to your cover.