Telkom launches funeral cover – Details and pricing

Telkom has announced that it will enter the financial services sector by launching a life insurance business.

Telkom Financial Services, which will initially only sell funeral insurance, seeks to address the needs of over 11 million South Africans who do not have bank accounts.

To do this, the company said it will also use its network and extensive customer base to expand its mobile payment apps into a variety of ecommerce platforms.

This new financial services business will be underwritten by cell captive insurance and risk solutions provider Guardrisk, which is a part of Momentum.

“In recent years Telkom has made a strategic shift to digital distribution, which puts it in an ideal position to distribute insurance products using its considerable digital structure and intellectual property,” said managing executive for Telkom Financial Services Sibusiso Ngwenya.

Details and pricing

Telkom has provided pricing and details about its funeral cover products on its website.

It notes the following:

  • Cover levels given are the maximum benefit amounts paid for each cause of death.
  • Customers can only sign up one spouse, up to eight children, and up to 14 extended family members on the products that allow for each of these beneficiaries.
  • Premiums are paid monthly and are guaranteed for the first 12 months.
  • The main member and spouse must be between the ages of 18 and 64.
  • Children must be 21 years old or younger.
  • Extended family members must be 74 or younger.

The options and pricing for Telkom’s funeral cover are outlined below.

Telkom Funeral Cover
Maximum Benefits and Premiums – Main Member Only
Option Option A Option B Option C Option D Option E
Natural Death R10,000 R20,000 R30,000 R50,000 R70,000
Accidental Death R20,000 R40,000 R60,000 R100,000 R100,000
Customer Premium R32 R64 R96 R160 R180
Maximum Benefits and Premiums – Main Member and Spouse
Option Option A Option B Option C Option D Option E
Natural Death R10,000 R20,000 R30,000 R50,000 R70,000
Accidental Death R20,000 R40,000 R60,000 R100,000 R100,000
Customer Premium R50 R99 R149 R248 R270
Maximum Benefits and Premiums – Main Member and Children
Option Option A Option B Option C Option D Option E
Main Member R10,000 R20,000 R30,000 R50,000 R70,000
Children 14-21 R10,000 R20,000 R30,000 R50,000 R70,000
Children 6-13 R5,000 R10,000 R15,000 R25,000 R50,000
Children 0-5 R2,500 R5,000 R7,500 R10,000 R20,000
Stillborn R1,250 R2,500 R3,750 R5,000 R5,000
Accidental Death R20,000 R40,000 R60,000 R100,000 R100,000
Customer Premium R36 R72 R108 R180 R204
Family Funeral Cover
Option Option A Option B Option C Option D Option E
Main Member R10,000 R20,000 R30,000 R50,000 R70,000
Children 14-21 R10,000 R20,000 R30,000 R50,000 R70,000
Children 6-13 R5,000 R10,000 R15,000 R25,000 R50,000
Children 0-5 R2,500 R5,000 R7,500 R10,000 R20,000
Stillborn R1,250 R2,500 R3,750 R5,000 R5,000
Customer Premium R54 R107 R161 R268 R292
Extended Family Option
Benefit Option A Option B Option C Option D Option E
Life Assured (0-74) R5,000 R10,000 R15,000 R25,000 R35,000
Accidental Death R10,000 R20,000 R30,000 R50,000 R70,000
Customer Premium (0-64) R30 R70 R90 R140 R195
Customer Premium (65 – 74) R95 R180 R255 R390 R585

Now read: Why South Africans should not buy their own ventilators

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Telkom launches funeral cover – Details and pricing