Old Mutual South Africa (OMSA), a financial services outfit based in Cape Town, in partnership with Shoprite, a local retailer based in Western Cape, recently launched a “Pay-When-You-Can” funeral insurance plan aimed at low-income individuals who cannot commit to making regular monthly payments.
Pay-When-You-Can plans come in two forms: Family Accidental Cover and Family Funeral Cover. The former is designed to insure individuals against unexpected death. The coverage is specifically aimed at those who travel the dangerous roads of South Africa for work. For a ZAR 9.95 (USD 1.41) premium, the insured is covered for 60 days for ZAR 5,000 (USD 709) and can choose to let the policy expire or renew it after the coverage period is over. The Family Funeral Cover, for a premium of ZAR 13.95 (USD 1.98), insures individuals for ZAR 500 (USD 70.9) for twelve months. More coverage can be purchased at higher premiums. The plan provides accidental death coverage for the duration of the twelve months and coverage for death resulting from natural causes starting in month seven after the premium is paid.
As of this month, individuals can pay for the plans at seven Shoprite locations in South Africa. By early February, the plans are scheduled to be available in 450 stores nationwide [1].
By John Howard-Smith, Research Associate
About Old Mutual South Africa (OMSA): Founded in 1845, Old Mutual South Africa is a financial services organization based in Cape Town, South Africa. It offers investments, life insurance, asset management and general banking and insurance products to individuals and businesses. The organization offers products targeted at poor people through its Black Economic Empowerment and Foundation Markets initiatives.
[1] Old Mutual: “Pay-when-you-can”, http://www.oldmutual.co.za/personal/buy-direct/pay-when-you-can.aspx
MicroCapital’s Microfinance Universe profile: Old Mutual South Africa (OMSA), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Old+Mutual+South+Africa+(OMSA)
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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