A home your family loves. School fees you’ve planned for. Parents who depend on you. Life insurance is about more than a payout—it’s about the responsibilities and possibilities that payout could protect.
But how much cover is enough? Should it be in rands or dollars? And what about your children’s education?
Here are five things worth understanding before choosing—or reviewing—your life insurance in South Africa.
1. Calculate your life cover around your life, not a round number
Choosing R1 million or R2 million because it sounds substantial isn’t the same as working out what your family would need.
A useful starting point is:
Debts + future family support + education costs + once-off expenses − suitable existing cover and available assets = an estimated cover shortfall.
For example, imagine you want to provide:
- R1.2 million to settle debts.
- R1.8 million for everyday family support—R15,000 a month for ten years, excluding the debt repayments and education costs budgeted separately.
- R600,000 towards education.
- R200,000 for once-off expenses.
That totals R3.8 million. Subtract R800,000 in suitable existing cover and available savings, and the illustrative shortfall is R3 million.
This is a conversation starter, not a personalised recommendation. It excludes inflation, investment returns, tax and fees. Avoid counting expenses twice: if you settle the bond, don’t also include its instalments in the monthly support budget. An adviser can refine the calculation around your dependants and circumstances. ASISA’s guide to calculating life cover explains the key considerations.
For a more detailed checklist, read our guide: How much life cover do I need in South Africa?
2. Protecting your family also means thinking about your income while you’re alive
Life cover generally pays a benefit when the insured person dies. Don’t assume it automatically includes protection if you survive an illness or become unable to work. Understanding life cover is a useful place to start.
Ask your broker to explain how life cover, disability cover, severe illness cover and income protection would fit together in your circumstances. Our personal cover options introduce the broader protection available.
The important question isn’t simply, “Am I insured?” It’s: “Which events am I covered for, and what would the policy actually pay?”
3. Discovery’s Dollar Life Plan offers cover in US dollars
If your family’s future could include overseas studies or financial commitments abroad, the currency of your protection deserves a conversation.
Discovery Life International’s Dollar Life Plan provides offshore life insurance denominated in US dollars, with death benefits paid in dollars. Depending on the benefits selected, the plan can also provide disability, severe illness and education protection.
However, dollar cover is not automatically better for everyone. If you earn in rands, exchange-rate movements can affect affordability. Discovery offers an Exchange Rate Protector with rates locked for specified periods, but that does not mean your rand premium stays unchanged forever. See Discovery’s Dollar Life Plan information.
Think of it as a protection option to assess against your needs—not an investment or a bet on the rand weakening.
4. Discovery’s Global Education Protector can help protect education costs
School fees are easy to include in today’s budget. Planning for years of education after a life-changing event is a different challenge.
Discovery Life’s Global Education Protector is designed to help cover qualifying education costs, from crèche through to tertiary studies, locally or internationally, following an insured event.
Depending on the option selected, those events can include death, qualifying disability or severe illness affecting an insured parent. Core and Private options have different benefit limits.
There is also a University Funder Benefit. Eligible Vitality members may qualify for contributions towards tertiary tuition if no claim has been made—up to 100% on the Private option or 50% on Core, subject to maximum amounts and other conditions.
That is not a blanket promise of free university. Your child’s age, the selected option, Vitality participation and applicable rules matter. See Discovery’s Global Education Protector information.
Ask how education protection would work alongside your existing savings and life cover, so the same need isn’t counted twice.
5. A good quote explains tomorrow’s costs—not just today’s price
An affordable starting premium matters. So does understanding what happens next.
Before accepting a quote, ask:
- How will premiums and benefits increase?
- What exclusions, waiting periods or benefit expiry ages apply?
- What information must I disclose?
- Are rewards or discounts conditional?
- Would a claim under one benefit reduce another?
Answer application questions fully and accurately. Missing or incorrect material information can affect a claim. Comparing policy terms is just as important as comparing premiums. ASISA’s guidance on disclosure and policy terms explains why.
Let’s put your life cover into perspective
You don’t need to arrive with all the answers. Start with your responsibilities, your existing policies and the questions keeping you unsure.
Proserve Advisory can help you understand your options and consider cover suited to your needs and budget.