Sanlam has launched a prepaid funeral insurance product that allows clients to purchase cover upfront for fixed periods, rather than paying monthly debit-order premiums.
The product, developed by Digisure Long-Term Insurance (LTI), a digital insurer within the Sanlam Fintech cluster, is positioned at consumers with irregular or fluctuating incomes who may struggle to maintain continuous monthly payments on traditional funeral policies.
Under the prepaid model, clients pay once-off for cover lasting three, six, or twelve months. Cover ends automatically when the prepaid period expires, unless the client purchases additional cover. According to Digisure, if a client buys new cover within one month of the previous period ending, waiting periods do not restart.
“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,” said Edwin Theron, the head of Digisure LTI. This flexibility gives policyholders greater control.
“We know that many people want funeral cover but forgo it because they worry about missing a debit order and losing everything. With prepaid, they can lock in cover when they have money – whether after a good month of earnings or when expenses are lower – without the risk of restarting waiting periods,” Theron said.
The product offers standardised benefit options that trade off cover amount against duration. For example, a client covering themselves can pay R125 upfront and choose R20 000 cover for three months, R10 000 for six months, or R5 000 for 12 months. The maximum period that can be purchased at present is 12 months.
Policies are limited to a maximum of two lives. Clients cannot currently pre-purchase or “stack” multiple prepaid periods to extend cover into the future, although the insurer says this may be considered later.
Standard waiting periods apply. There is a three-month waiting period for natural death and a 12-month waiting period for suicide. If cover expires and is repurchased more than one month later, waiting periods would apply again.
Digisure says it will communicate with clients before cover expires to allow them to plan a subsequent purchase.
At launch, cover is activated once payment has been successfully processed. Digisure has indicated that voucher-based distribution will be introduced, allowing clients to buy vouchers and activate cover when required, but this functionality is not yet live.
The insurer says payment processing time provides a safeguard against immediate activation for anticipated events.
Sanlam has framed the product as an inclusion-focused experiment rather than a replacement for traditional funeral policies with monthly premiums.
“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. 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. And that’s what inclusion is about – meeting people where they are,” Theron said.
Distribution will initially rely on retail-based channels such as airtime and data sellers, with greater digital distribution planned over time.
The product is underwritten by Sanlam Developing Markets.
