FAMILIES should ideally discuss and agree on who will assume “financial responsibility” for which member(s) of the family.

The person who assumes this financial responsibility should accept the responsibility based on their ability to afford the financial obligation.

Their ability to pay for the financial obligation may be done from savings, a funeral cover policy or another suitable financial product to help deal with any sudden lump sum payment that would negatively affect their monthly cash flow.

How does the Capitec extended family plan work?

The Capitec funeral cover plan, underwritten by Centriq Life, allows the person who has assumed financial responsibility to cover a family of up to 22 members, namely:

  • Themselves (one) up to R100 000;
  • Spouse (one) up to R100 000;
  • Children (eight) from R10 000 to R60 000 (age limits apply);
  • Parents (four) up to R50 000 each; and
  • Extended family members (eight) up to R50 000 each.

Covering your family’s funeral insurance needs

There are many funeral insurance offerings on the market in South Africa, with most now offering cover for more than the traditional nuclear family unit.

Capitec’s Brent Moore explains why the bank, in conjunction with Centriq Life, has launched a funeral offering where you can buy cover for yourself and 21 dependants.

“Some funeral cover products are offered as bundled offerings, covering a limited number of family members,” Moore says.

“For the client to cover the full family and related financial obligations, they might need to take out multiple policies. We wanted to create an offering that was flexible according to what our clients need in terms of the number of lives to be covered and the cover amounts, and thus offer great value for money. Capitec’s plan allows our client flexibility and the ability to manage their financial commitments on one policy contract,” he says.

On the Capitec plan, you can get cover for one spouse and up to four parents, eight children and eight extended family members.

Extended family is defined as the following:

  • Your spouse – where you have more than one spouse, or your spouse falls outside the age requirements for a spouse, the additional spouses can be covered as extended family members.
  • Parent - where you have more than four parents, the additional parents can be covered as extended wider family members.
  • Child - where you have more than eight children or the child falls outside the age requirements, the additional children can be covered as extended family members.
  • Great-grandparents who are your parents’ grandparents.
  • Great-grandparents-in-law, who are the grandparents of your spouse’s parents.
  • Grandparents, who are your parents’ parents.
  • Grandparents-in-law are the parents of your spouse’s parents.
  • Parents-in-law, who are the parents of your spouse.
  • An aunt, who is the sister of your father or mother, or your uncle’s female spouse.
  • An uncle, who is the brother of your father or mother, or your aunt’s male spouse.
  • Brother, who is your parent’s male child.
  • Sister, who is your parent’s female child.
  • Brother-in-law is the male person married to the child of your parents.
  • Sister-in-law is the female person married to the child of your parents.
  • First cousin who is the child of your aunt or uncle as defined above.
  • Son-in-law, the male person who is married to your child.
  • Daughter-in-law, the female person who is married to your child.
  • Nephew, who is the male child of your brother or sister.
  • Niece, who is the female child of your brother or sister.
  • First cousin’s child.
  • Grandchild who is your child’s child.
  • Great grandchild, who is your grandchild’s child.

This project is reported by Daily Sun and paid for by Capitec