Funeral cover is an essential financial product in South Africa, helping families manage the high costs associated with burials and ceremonies. However, many South Africans work in the informal sector or are self-employed, meaning they do not have traditional payslips. This raises a common concern: can you get funeral cover without a payslip? The answer is yes. Several insurance providers offer funeral policies that do not require proof of formal employment or a payslip.
This article explores how individuals without a payslip can still secure funeral cover and what factors they need to consider.
Why Do Some Insurers Require a Payslip?
Insurance companies often require payslips to assess an applicant’s ability to pay monthly premiums. A payslip serves as proof of income, reducing the risk of policy lapses due to non-payment. However, many South Africans, including freelancers, informal traders, and gig workers, do not have a standard payslip but still earn a steady income. Recognizing this, many insurers have adapted their policies to accommodate individuals without formal employment.
How to Get Funeral Cover Without a Payslip
If you do not have a payslip, you can still apply for funeral cover through alternative means. Here are some ways to qualify:
1. Provide Bank Statements
Many insurers accept bank statements as proof of income. If you have a steady flow of income deposited into your bank account, insurers may consider this sufficient to approve your funeral policy. Typically, they may require statements for the last three to six months.
2. Use an Affidavit
Some insurers allow applicants to submit an affidavit stating their employment status and income. This is particularly useful for informal traders, domestic workers, and self-employed individuals who do not have formal banking records.
3. Show Proof of Business Income
If you run a small business, insurers may accept invoices, receipts, or other financial records as proof of income. This is an option for entrepreneurs who do not receive a formal salary but still have a stable income source.
4. Choose Insurers That Do Not Require Income Proof
Certain insurance providers in South Africa offer funeral cover without requiring any proof of income. These policies are designed for individuals in informal employment and often have flexible payment options, such as cash payments at retail stores or mobile banking.
Best Funeral Cover Options Without a Payslip
Several insurance companies cater to individuals without formal employment. Some of the best options include:
1. AVBOB Funeral Cover
- No payslip required
- Affordable premiums starting from as little as R37 per month
- Cash benefits and burial services included
2. Old Mutual Funeral Plan
- Flexible payment options
- Allows self-employed and informal sector workers to apply
- Pays out claims within 48 hours upon approval
3. Clientele Funeral Cover
- No payslip or bank account required
- Cash-back benefits available
- Covers multiple family members under one policy
4. Assupol Funeral Cover
- Accepts bank statements or affidavits
- Offers double accidental death benefit
- Premiums from as low as R70 per month
Things to Consider Before Choosing a Funeral Cover
When selecting funeral cover without a payslip, consider the following factors:
1. Premium Affordability
Ensure that the monthly premium fits within your budget to avoid policy lapses.
2. Waiting Period
Many policies have a waiting period of 3 to 6 months before claims can be made, except in cases of accidental death.
3. Coverage Amount
Check how much the policy pays out to ensure it covers funeral expenses adequately.
4. Inclusion of Family Members
Some policies allow you to cover extended family members, which can be beneficial for large families.
Check also: What Happens to Funeral Cover After the Policyholder’s Death?
It is possible to get funeral cover in South Africa without a payslip. By providing alternative proof of income, choosing insurers that do not require formal employment verification, and selecting affordable policies, you can secure funeral cover that ensures financial protection for your loved ones. With many insurers offering flexible options, everyone, regardless of employment status, can find a suitable funeral plan.
