Can you really get insurance from a mobile telecoms company? Believe it or not, you can, as the Vodacom has recently expanded into the life insurance market.
Vodacom and Insurance
Technically, Vodacom have been in the insurance game for the last four years, though up until now your insurance options have been limited to mobile device insurance. But you can now get insurance coverage ranging from R200,000 to R10 million from the company, and there's a funeral option too!
Why would a mobile company expand into insurance? The answer's simple: money. With South Africa's insurance market estimated at around R61 billion, Vodacom wants a slice of the pie. And given that a recent study found that about 40% of South Africans don't have any form of insurance, there's plenty of that pie left on the plate for Vodacom.
However, the company isn't aiming their products at all consumers. With average life cover premiums at around R250 per month, and funeral cover premiums at about R150, Vodacom is aiming to provide simple, easy to understand insurance to those who can't afford to pay a fortune.
What the Vodacom Expansion Means for You
More choice is always a good thing, and that's exactly why Vodacom's expansion is good news for you, whether you opt to sign up with them or not. More choice means more competition, and that means lower premiums for us all in the long run as companies vie for customers. Plus, there's the added convenience of signing up for your life insurance at the same time as you're topping up credit or signing a new mobile contract.
Does it make sense for Vodacom to start playing the life insurance game? With all those profits to be made, probably yes. But in the end, what matters to you is that there's another option available on the affordable life insurance market, and more choice equals savings all around.
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Main subject: Vodacom