According to the 2016 Life and Disability Insurance Gap Study, the average South African earner has a Life and Disability Insurance gap of R2.1 million, meaning that most fall short of having their financial needs sufficiently covered in the event of death or disability1.
The 2016 Life Insurance claim results by insurers showing an increase in cancer claims among young adults is another concern2. Statistics by CANSA also show that 90% of cancers are caused by factors such as smoking, diet and lifestyle3.
Online insurance and financial comparison website, Hippo.co.za, did an experiment on their platform in order to compare Life Insurance quotes for smokers and non-smokers with exactly the same entry criteria for males and females in the respective age groups.
The below results show the differences in Life Insurance premium ranges for R1million cover4:
Criteria (Age) |
Estimated Monthly Premium (smoker) |
Estimated Monthly Premium (non-smoker) |
Female |
||
25 years old |
R112 - R230 |
R104 - R203 |
30 years old |
R125 - R251 |
R104 - R211 |
40 years old |
R214 - R365 |
R129 - R262 |
50 years old |
R408 - R740 |
R221 - R394 |
60 years old |
R816 - R1278 |
R438 - R742 |
Male |
||
25 years old |
R204 - R290 |
R144 - R244 |
30 years old |
R201 - R318 |
R144 - R252 |
40 years old |
R320 - R486 |
R183 - R326 |
50 years old |
R585 - R901 |
R323 - R530 |
60 years old |
R1265 - R1943 |
R654 - R1091 |
*Figures as at 2 May 2017
“The sample results show estimate Life Insurance premiums from a range of different South African providers, says Derek Wilson, head of Hippo.co.za, “It is also interesting to note that premiums are lower when consumers take out Life Insurance earlier in life”.
Here are some more tips on how you could lower your Life Insurance premiums5:
Hippo.co.za offers an online comparison service, where you are able to compare quotes and benefits from a range of South African Life Insurance providers such as 1st for Women, 1Life, Absa, Alexander Forbes, Auto & General, Budget, Dialdirect, and Different Life, with more partners being approached to join the panel,” concludes Wilson.
Sources: