Sanlam’s new prepaid funeral cover works like buying airtime, offering flexible terms to tackle income uncertainty. The product aims to include millions previously locked out of traditional insurance.
In a major shift for the industry, Sanlam has launched South Africa’s first prepaid funeral cover, directly confronting the problem of lapsed policies due to irregular incomes.
Developed by its digital arm, Digisure Long-Term Insurance (LTI), the product allows clients to purchase cover upfront for 3, 6, or 12 months, mirroring the pay-as-you-go model used for airtime and electricity.
“The concept mirrors the way many people already buy airtime, data or electricity – on a prepaid, pay-as-you-go basis – instead of committing to long-term contracts,” explains Edwin Theron, Head of Digisure LTI.
“In the same way, clients can now purchase funeral cover upfront for three, six or twelve months, depending on what they can afford at the time.”
This model directly addresses a critical flaw in conventional cover, which relies on steady debit orders and leaves policyholders vulnerable if they miss a payment.
“We know that many people want funeral cover but forego it because they worry about missing a debit order and losing everything,” Theron states.
“With prepaid, they can lock in cover when they have money… without the risk of restarting waiting periods.”
The initiative is positioned as a needs-based solution for financial inclusion, not a replacement for traditional policies.
“What we want to do is better understand clients’ real needs and design products that are specific and relevant, rather than simply pushing more of the same,” says Theron.
He emphasizes the social good of insurance, noting this model extends that protection to those with “irregular earning patterns.”
Leveraging its owned technology stack, Digisure LTI will initially distribute the cover through retail ambassadors and a digital journey within the Blue Label ecosystem. Clients buy a voucher and activate it when they need coverage to begin.
“Our long-term goal is for the majority of sales to be made fully digital, so that clients can buy cover directly, in the same way they top up data or electricity,” Theron explains.
The launch is framed as an experiment in inclusion.
“This product launch is not about replacing existing funeral policies but about experimenting with new ways to serve a specific segment of previously excluded clients,” Theron concludes. “It won’t appeal to everyone, but for those living with fluctuating incomes, it offers dignity, peace of mind and a real pathway into long-term financial protection.”
Concluding on this is Tshepo Mogotsi, Head of Communications at Sanlam Fintech, who says, “As a cluster within the Sanlam Group, we are committed to developing innovative, digitally led solutions. At the heart of everything we do is a desire to enable South Africans to live with confidence and make financial inclusion a reality. We’re proud to be trialling this concept and look forward to the market’s response, knowing the significance that the final send-off a funeral holds to many”.
