By Palesa Matlala
- A Soweto family of 22 relatives took out funeral policies on each other and agreed to share R15,000 from each R30,000 payout when one dies.
- Since 2020, three relatives have died and the payouts have helped clear student loans, cut home loans in half and start a catering business.
Some families bury their loved ones and move on with grief.
Others see a chance to survive hard times.
In Soweto, one family decided to insure each other after losing their grandparents. They wanted to make sure that when death comes, it also brings financial relief.
The Radebe family, made up of 22 siblings and cousins, took out funeral cover policies from different financial institutions. Each policy pays out R30,000 when a member dies.
They agreed that when one of them passes away, R15,000 from the payout would go to another family member who needs help with debt.
The idea started in 2020 when Covid brought the world to a standstill. Three of their relatives were among the 102,595 South Africans who died from Covid related causes.
Sesi Mazibuko, 52, said some people may see the plan as cruel. But she believes it is better than struggling with debt.
“My family and I spoke about it. We know who has children in varsity, those that are paying off their homes and cars and those that need to renovate their homes,” she said.
Mazibuko said it is common in African families for people to insure relatives but not help with funeral costs.
“It is sad that people would not contribute. The truth is that the money was intended for the burial. Contribute half and keep the other,” she said.
She said their arrangement needs trust. But no one has failed to pay when it was their turn.
Since they started, three grandchildren have cleared their student loans. Two siblings have paid off half their home loans. One relative used the money to start a catering business that is now doing well.
Research shows that more than 1.5 million funeral claims were processed between April and September 2021. This led to R92 million being paid out in benefits.
Experts say the funeral cover market grows because many African families believe in giving loved ones a dignified burial.
For the Radebes, death is painful. But it has also helped them rebuild their lives.
Pictured above: Family members who insure each other for funeral payouts.
Image source: File
