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Telkom launches its own funeral cover

Tech news 3 August 2020

Telkom has announced that will be launching a life insurance business, called Telkom Financial Services, which will initially only sell funeral insurance.

The company noted that the reason for this new service is to cater to South Africans who do not have bank accounts and it will do so by using its network and extensive customer base to expand its mobile payment apps into a variety of e-commerce platforms.

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

Here are the details about the new service:

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.

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

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