FNB’s Life & Legacy Plan makes affordable, holistic life cover more accessible
A focus on legacy management is a standout feature of this new life insurance offering
As part of its ongoing efforts to make life insurance more accessible to more South Africans, while addressing key challenges within the industry, FNB has launched its FNB Life & Legacy Plan.
This comprehensive solution builds on the bank’s long-held commitment to simplifying life insurance so that more people and families have the tools they need to successfully navigate the challenges of life and funeral cover, estate planning and wills.
The new FNB Life & Legacy Plan represents the next stage in FNB’s continued journey to make life insurance easier to understand, buy and tailored to a person’s individual needs.
Since it embarked on this quest in 2021, FNB has sold almost 400,000 of its simplified life cover policies, despite the challenges it, and the entire life insurance industry, faced during and after the Covid-19 pandemic.
According to Lee Bromfield, CEO of FNB Insure, the launch of the FNB Life & Legacy Plan represents another major step forward by the bank towards offering flexible solutions that meets the evolving needs of South African families.
“The FNB Life & Legacy Plan is about much more than just securing a payout if you pass away,” he says. “It’s about providing a holistic solution that includes financial cover, a will, meaningful support with estate administration and many other value-adds. We want our clients to know that they are not alone when it comes to planning for the future because FNB is here to help them every step of the way.”
The FNB Life & Legacy Plan is a holistic solution that includes financial cover, a will, meaningful support with estate administration and many other value-addsLee Bromfield, CEO of FNB Insure
Bromfield says that the FNB Life & Legacy Plan represents FNB’s response to the historical challenges the SA life insurance industry has faced in delivering a compelling value proposition to the lower- to upper-middle-income markets.
“Many individuals in these groups have found the underwriting process lengthy and complicated, and some perceive life insurance as unaffordable compared to more familiar funeral cover policies,” he says. “This has contributed to a low persistency of life insurance policies, particularly within the first 12 months.”
The FNB Life & Legacy Plan aims to address this by simplifying this journey. The product offers flexible coverage options, ranging from R100,000 to R1.5m, which can be tailored to each customer’s needs. It also allows the policyholder to choose between a lump sum payout or a structured monthly income over 24 months, giving families the ability to manage their finances in a way that suits their circumstances.
“Many people assume that life cover is only about providing a large sum of money when someone passes away,” says Bromfield. “While the FNB Life & Legacy Plan does that, it’s more about helping families navigate the aftermath of a death — particularly of a breadwinner — supporting them with immediate funeral expenses, making sure their long-term financial needs are taken care of, and guiding and supporting them through the challenging estate execution process.”
This focus on legacy management is a standout feature of the FNB Life & Legacy Plan. The product integrates will and estate benefits to provide clients and their beneficiaries with a clear path to manage all assets after the covered individual passes.
FNB offers a 30% discount on executor’s fees if the estate is managed through FNB Fiduciary and the plan includes cover for up to R100,000 towards the remaining executor fees — helping beneficiaries avoid the high fees often associated with estate management.
In addition, the FNB Life & Legacy Plan includes support for minor beneficiaries through the Minor Beneficiary Trust option. This ensures that any funds allocated to children under the age of 18 are professionally managed to meet their specific needs, protecting their financial future.
The FNB Life & Legacy Plan is about giving people the tools they need to protect their families, fulfil their wishes and ensure that their legacy is honouredLee Bromfield, CEO of FNB Insure
“FNB’s approach has always been to make life insurance simpler and more relevant to the needs of all South Africans,” Bromfield says, “which is why we have made sure our FNB Life & Legacy Plan includes several additional features aimed at providing peace of mind to policyholders”. These include a terminal illness benefit that allows an insured individual to access their full life benefit if they are diagnosed with a terminal condition and given less than 12 months to live.
Retrenchment cover can be added onto the policy as an optional extra, which supports customers for up to six months if they lose their income, ensuring that their premiums remain manageable during difficult times.
To augment affordability and make the FNB Life & Legacy Plan more “sticky”, the solution includes a premium payback reward after 36 months, where policyholders can have a portion of their premiums refunded either as eBucks or in cash.
“We are proud to provide a life insurance product that truly understands the challenges and needs of South Africans,” Bromfield says. “The FNB Life & Legacy Plan is about giving people the tools they need to protect their families, fulfil their wishes and ensure that their legacy is honoured. It’s a solution designed not just for today’s needs, but for the future.”
For more information about the FNB Life & Legacy Plan, visit your nearest FNB branch.
This article was sponsored by FNB.
Terms and conditions apply. FNB is an authorised FSP. Insured by FirstRand Life Assurance Limited, a licensed insurer.