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Funeral Cover

Funeral Cover

Funeral Cover that doubles after 2 years at no extra cost.

1. About Funeral Cover

What it is Funeral Cover?

Funeral insurance is designed to pay for your funeral and other once-off final expenses so that the people you leave behind aren't left with huge bills. You can also insure the lives of up to 20 family members, so you can focus on giving your loved ones a decent funeral when they pass on without worrying about your cash flow.

We usually pay out within 4 to 48 hours of a claim, so you have ready cash to pay for the immediate costs of a death.

Like all Sanlam Indie policies, your Funeral policy includes a free investment. We’ll match up to 100% of your premium in an investment account as a retirement boost for you.

Do I need Funeral Cover?

Funeral Cover insures your own life. That means when you die, we'll give your beneficiaries a single lump sum payout to help pay for your funeral and other expenses – like mortuary costs, or transporting your body to its final resting place – so they aren’t left with huge bills to pay on top of everything. Without a policy, someone who wasn’t expecting to pay, or worse, someone who simply cannot afford to pay, would have to cover those costs.     

Family Funeral Cover insures the lives of others. You can insure the lives of up to 20 family members, so you’ll be able to pay the immediate costs when a relative passes on.

How much Funeral Cover do I need?

Well, that all depends on how big of a send-off you want for yourself or for the ones you love. We take into account your income (just to make sure you can afford it), the age of each family member you add, and their relationship to you.

You and your spouse can be covered for up to a maximum of R50,000 each, and you can choose to insure additional lives for up to a maximum of R50,000 each. Sanlam Indie will automatically double your cover after two years without any increase to your monthly premiums (assuming you haven’t had to claim in that time).

Why’d we create Funeral Cover?

Your funeral. The worst party you'll ever go to. We hope. Thankfully, you won't have to live through it, but many of your most cherished friends and family will. A lump sum payout will help get them through a tough time without having to worry about how to pay for funeral essentials.

On the other hand, you also don’t want to be the one worrying about money when you’re already coping with the loss of a family member. Death can be expensive: think repatriation (transporting the body home), mortuary costs, and the funeral itself (venue hire, catering, burial… ). We made Funeral Cover so that you and your loved ones can go out with a bang without leaving anyone with a bill they can’t afford.

2. Claims & payouts

How are Funeral Cover claims paid?

Claims are paid to you or your beneficiaries (or your estate if you haven’t specified any) as fast as possible: usually within 4 hours of us receiving the paperwork (like the death certificate). Some payouts might take longer if we suspect fraud and choose to investigate.

Basically, we just need a bit of time to make sure no one’s faking their own death, but we aim to get you the cash asap.

When doesn’t Funeral Cover pay out?

Funeral Cover will not pay a claim if:

  • The insured life commits suicide within the first 12 months of the cover activating
  • The insured life dies of natural causes within 6 months of the cover activating
  • The insured life dies as a result of participating in something illegal
  • You have provided us with incorrect information

When will claims be paid?

We aim to pay most claims within 4 hours of receiving the right paperwork (such as death certificate) so the money is available as soon as possible for funeral-related costs. Some payouts might take longer if we suspect fraud and choose to investigate.

Who gets paid?

Funeral Cover: you should nominate a beneficiary to get the lump sum payout when you die. If you prefer, you can choose to have the full cover paid into your estate.

Family Funeral Cover: If you choose to add additional lives to your policy, you, the policyholder, will be paid the lump sum for an insured family member if they die.

Is the claim payout taxable?

Nope. Funeral payouts are not taxed.

3. Premiums

How do Funeral Cover premiums work?

Your premiums will not increase annually. We reserve the right to reprice premiums in future if there are more claims than expected, but apart from that, your premiums will stay the same each year.

The good news is, your cover doubles at the start of the third year of your policy (assuming you haven’t claimed), but your premiums will stay the same.

Can I skip a Funeral Cover premium?

You can skip a premium at any time. If you do skip a premium, we’ll reduce your cover temporarily until you have paid 6 consecutive premiums.

There is a lifetime limit on the total number of times you can skip premiums.

Read more here

4. About the cover

Will the cover amount change?

Your Funeral Cover amount will not increase year by year. Neither will your cover – except for when we double your cover after two years at no extra cost to you.You can also choose to add other Sanlam Indie products at any time, but we may first need you to answer some short medical questions first.

When does the cover end?

This cover will last for as long as you continue to pay premiums. If you die, we’ll continue to cover the other lives on your Family Funeral policy for 6 months, and we’ll even do it for free (nobody needs to take over paying the premiums). After those 6 months are up, the entire policy will get cancelled and we won’t pay out if anyone else dies.