ABSA Instant Life Escape clauses - watch out.

You need to be very careful about entering into an agreement with ABSA Instant Life. Firstly, they have a cooling off period of 31 days from the time you actually apply for life insurance - NOT the date that it actually becomes effective. So in my case, although I chose to cancel the insurance, they refused to give me a refund even though my cancellation request was put in before the cooling off days were up from the day the policy started. So the customer gets done in for any delays in the sign up process, which are actually part of your cooling off period. This is in writing from them.

During the application process, they asked for proof of three months of salary being deposited into the bank account. I told them that my salary deposit is not deposited into the bank account I would use for the deduction. They said that is fine but then presto when they issued the policy, they said that the policy will not remain valid, but is in fact, contingent on there being a three month salary deposit into the bank account, reflected for three months in a row. Not cool and totally dishonest and disingenuous.

I also needed to do an HIV test. They said to use either Pathcare or Lancet. Pathcare doesn't exist in my province of residence but they don't tell you that. So when I went to get the test done at iPath (results when you search for Pathcare near you on Google), I ended up having to pay for this test and they refuse to use the result (which was negative anyway). Although not hugely expensive - R180 - the principle remains. There is absolutely no regard, no respect, nor clear direction from them, nor accountability.

Another thing to watch out for are any escalations. ABSA Instant Life will charge you a 7,5% premium increase annually, which becomes quite restricticve for people with income that is not going to increase by that same amount if inflation drops, and if you want the benefit itself to increase, you will be required to also pay a further 5% for only a 5% benefit increase. So in total, your repayment becomes increased by 12,5% and you pay for the risk of dying year on year as they try to make sure you live long, pay for as long as you can, but eventually, become unable to afford it so that the policy becomes cancelled anyway in life. You are in this scenario, better off investing that money for a real return. **************** if you are not watching for it.

You'd be much much better off going with Old Mutual or Sanlam, etc. Insurance is not at the core of banking - not for life insurance!

Ver bad experience with Absa Instant Life. Disingenuous. They are an uncaring organisation who have some very clever actuaries figuring out how best to make money out of people that want to care for their families after they die.