Telkom and Old Mutual have reached a deal in terms of which the telecommunications operator will provide funeral cover to its customers.
The first product will offer Telkom’s prepaid customers with “loyalty funeral cover”, underwritten by Old Mutual, valued at R10 000 “at no additional cost”.
Telkom customers on the Sim-Sonke and Telkom More prepaid plans will qualify for the R10 000 funeral cover by recharging with R100 or more of airtime, through single or multiple recharges amounting to R100 in one calendar month, opting in and nominating a beneficiary. The loyalty funeral cover will start at the beginning of the following month and will be valid until the end of that particular month, Telkom said in a statement.
Qualifying customers must opt in for the funeral cover. Their personal details, as well as a nominated beneficiary, will be captured, and they will then be eligible for the cover for as long as they maintain a monthly airtime spend of R100.
In the event that they fall short of the R100 airtime spend for a particular calendar month, they will not be eligible for the funeral cover during the following month. Once the required spend is met again, cover will be reinstated for the subsequent calendar month.
“Old Mutual has developed a micro-insurance voucher system that will underpin this solution, enabling customers to opt in, nominate and manage a beneficiary, track their loyalty funeral cover and even submit a death claim using the Old Mutual app or USSD,” Telkom said.
“While competitors may offer paid premium insurance to their customers, Telkom will be rewarding customers for their airtime spend with funeral cover at no additional cost…,” said CEO Sipho Maseko.
“Giving South Africans easy access to insurance products through their mobile devices not only reduces cost, it accelerates financial inclusion, which is critical to reducing poverty and inequality [and] contributes to boosting our nation’s development and future financial wellbeing,” said Old Mutual South Africa CEO Dave Macready in the statement.
Telkom said the intention is to expand the agreement with Old Mutual beyond funeral cover over time. — © 2015 NewsCentral Media