Telkom has announced that it will enter the financial services sector by launching a life insurance business.
Telkom Financial Services, which will initially only sell funeral insurance, seeks to address the needs of over 11 million South Africans who do not have bank accounts.
To do this, the company said it will also use its network and extensive customer base to expand its mobile payment apps into a variety of ecommerce platforms.
This new financial services business will be underwritten by cell captive insurance and risk solutions provider Guardrisk, which is a part of Momentum.
“In recent years Telkom has made a strategic shift to digital distribution, which puts it in an ideal position to distribute insurance products using its considerable digital structure and intellectual property,” said managing executive for Telkom Financial Services Sibusiso Ngwenya.
Details and pricing
Telkom has provided pricing and details about its funeral cover products on its website.
It notes the following:
- 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.
The options and pricing for Telkom’s funeral cover are outlined below.
| 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 |
source : https://bit.ly/3gwrZnd