Johannesburg - FNB has launched wholesale online life cover direct to its customers for up to 50% cheaper than market-related equivalent products.
The offering includes life, disability, critical illness and retrenchment cover, with no pre-exclusions on death on life cover.
Critical illness cover includes heart attack, stroke, cancer and open heart surgery, among other conditions.
"Life cover and its related offerings are one of the highest priorities in the minds of South African parents," said CEO Michael Jordaan on Wednesday.
"We need only look at the enormous popularity of stokvels offering funeral cover to see how important this is. The fact that there is such a wide insurance gap only indicates that affordability excludes large numbers. By offering cover at wholesale prices, I believe we can bring about a widespread improvement in the financial stability of families," he said.
"To ensure that our customers are getting the best possible value for money, we have stripped out all unnecessary distribution costs, such as advertising and broker fees, enabling us to pass the saving on to our customers," said Johan Nagel, CEO of FNB Insurance.
Only 3.8 million out of a potential 12.4 million South African income earners are currently insured for life cover.