Capitec says it aims to “disrupt the insurance market” by launching funeral plans in May.
On Tuesday the group said it is closing in on 10 million customers, rising 15% to 9.868 million, from 8.569 million over the past year.
“We believe that offering insurance solutions that are personalised and competitively priced will deliver value to our clients and disrupt the insurance market in a similar way to what we do in banking,” said chief executive, Gerrie Fourie.
“The unique funeral traditions in South Africa often result in clients who earn an income being responsible for the considerable costs of a funeral for either a direct family member or a dependant in their broader community,” the bank said.
“We aim to launch the Capitec Funeral Plan, underwritten by Sanlam, in May 2018, as part of Insure, the new addition to our Global One Solution. This is an opportunity to further diversify our business and expand our product offering to clients to improve their financial lives,” the bank said.
Capitec said its funeral cover solution ensures that clients will only contribute what they can afford. A single contract can benefit up to 21 dependents.
The voluntary pause option will allow policyholders to put their policy on hold for a maximum of six months if they are under financial strain.
The new-born premium waiver benefit celebrates additions to clients’ families at no cost for up to six months. “Should an unnatural death or accident occur, the life assured will be covered immediately at twice the amount,” it said.