Prepaid funeral cover now available in South Africa

Funeral cover is a major industry in South Africa – but research shows that there is a segment of the population that lacks access to this type of insurance, as it usually requires a monthly premium payment.

This includes workers in the gig economy, or those with fluctuating disposable income. If payments are missed, the policies are often cancelled.

Now, a first-of-its-kind, prepaid funeral cover has been launched to make these products accessible to more South Africans.

Head of Digisure LTI at Sanlam Fintech, Edwin Theron says clients often want funeral cover, but with more flexibility in how they pay for it.

"This product allows you to pay for cover up front, you can pay a single premium, and then enjoy cover for three months, six months or 12 months at a time... during which you then have time to make sure you can buy more cover, if you want it, when this first block of cover expires."

There is also flexibility within the policy, giving clients more control.

"You can pay R120 up front, once-off premium... you can then choose whether you take R20,000 cover for three months, or if you want that cover to extend for longer for the same premium, it's a slightly lower cover amount."

Theron says this product was born out of research that showed how the evolution of work needs a more financially inclusive approach to better serve the changing needs of clients.

To listen to Edwin Theron in conversation with 702's Relebogile Mabotja, use the audio player below: