Which Bank Has the Cheapest Funeral Cover for Low-Income Families in South Africa
Complete comparison guide for affordable funeral insurance in 2024
Last updated: November 2024
Quick Facts
- Capitec offers the cheapest funeral cover starting from R25 per month via their app
- TymeBank funeral cover starts at R93 per month with extra benefits included
- African Bank provides affordable cover from R22 per month for basic protection
- Average funeral costs in South Africa range from R15,000 to R50,000
- You can cover up to 21 family members on one Capitec policy
Table of Contents
Why Funeral Cover Matters for Low-Income Families
Funerals in South Africa are expensive. The average basic funeral costs between R15,000 and R50,000 in 2024. For low-income families, this cost can be devastating. Many families go into debt or rely on loans just to bury their loved ones with dignity.
Funeral cover is a special type of insurance. You pay a small amount every month. When someone covered by your policy dies, the insurance company pays out money to cover funeral costs. This means your family does not have to struggle to find money during a difficult time.
As of November 2024, South Africa is ranked the fourth most expensive country in the world for funeral costs. Prices are 3% above the global average. This makes affordable funeral cover essential for protecting your family’s finances.
📊 Key Statistics for 2024
- Basic funeral costs: R15,000 to R50,000
- Funeral with catering for 50 guests: R70,000 to R84,000
- Average burial plot: R2,200 to R11,000 (municipal)
- Basic coffin: R450 to R5,000
- Undertaker fees: R4,000 to R10,000
- 71% of South Africans do not have adequate funeral cover
✅ The Cheapest Bank Funeral Cover Options in South Africa
Based on our research of major South African banks in November 2024, here are the most affordable funeral cover options for low-income families:
🥇 Winner: Capitec Bank – From R25 per month
Capitec offers the absolute cheapest funeral cover when you buy through their app. You can start with just R25 per month. Cover goes up to R100,000. You can add up to 21 family members on one policy.
🥈 Runner-up: African Bank – From R22 per month
African Bank has very low starting premiums at R22 per month. However, this only covers basic protection. You’ll need to increase your cover amount for adequate funeral expenses. Cover ranges from R5,000 to R100,000.
🥉 Third place: TymeBank – From R93 per month
TymeBank is more expensive but includes valuable extras. You get grocery assistance for 3 months, a R250 airtime voucher, and help with funeral arrangements. Good value if you need the extra benefits.
Capitec Funeral Cover – The Cheapest Option
What You Get:
- Starting price: R25 per month (via app) or R40 per month (in branch)
- Maximum cover: R100,000 for main member and spouse
- Family members: Cover up to 21 people (1 spouse, 4 parents, 8 children, 8 extended family)
- Waiting period: 6 months for natural death, waived for accidents
- Double payout: Accidental death pays double the cover amount from day one
- Pause option: Can pause cover for up to 6 months without losing your policy
- Premium waiver: If main member dies, family covered free for 6 months
- Newborn benefit: New babies covered free for 6 months
- Repatriation: Help with transporting deceased within South Africa and SADC countries
Who Can Apply:
You must be a Capitec Bank client between 18 and 65 years old. Children can be covered from birth. Extended family members can be covered up to age 84.
How to Apply:
- Download the Capitec app or visit any Capitec branch
- Choose how many people you want to cover
- Choose your cover amounts (or tell them your budget)
- Provide birthdates for all family members
- Set up your debit order
- Receive immediate confirmation
Contact Information:
Phone: 0860 102 043 (24-hour Client Care)
Website: www.capitecbank.co.za
Underwritten by: Capitec Life Limited (FSP 54090)
TymeBank Funeral Cover – Best Extra Benefits
What You Get:
- Starting price: R93 per month
- Cover amounts: R10,000 to R50,000
- Family members: Yourself, spouse, up to 5 children, up to 2 parents
- Grocery benefit: 3 months of grocery assistance after death (10-20% of cover amount per month)
- Airtime voucher: R250 airtime when you need it most
- Stillborn cover: R5,000 included automatically
- Children’s cover: 50% of your cover amount (max R20,000)
- Parent cover: Equal to your cover amount (max R20,000 per parent)
Special Benefits:
The grocery benefit is unique to TymeBank. For 3 months after the main member dies, beneficiaries receive a monthly payment based on the average money deposited into TymeBank accounts over the previous 3 months. This helps the family with living expenses during a difficult time.
Who Can Apply:
You must be a TymeBank account holder between 18 and 79 years old. You need to verify your identity at a TymeBank kiosk in a Pick n Pay store.
How to Apply:
- Go to a TymeBank kiosk at any Pick n Pay store
- Open a TymeBank account if you don’t have one
- Choose your funeral cover package
- Use biometric verification (fingerprint)
- Set up your debit order
- Get instant confirmation
Contact Information:
Phone: 0860 333 118 (Hollard Customer Care)
Website: www.tymebank.co.za
Underwritten by: Hollard Life Assurance Company (FSP 1993/001405/06)
African Bank Funeral Cover – Low Starting Price
What You Get:
- Starting price: R22 per month
- Cover amounts: R5,000 to R100,000
- Main members: Up to R100,000 each for you and spouse
- Children: Up to R20,000 per child (maximum 8 children) – FREE
- Extended family: Up to R50,000 per person (maximum 8 people)
- Cover increases: Your cover amount grows every 6 months while premiums stay the same
- Quick payout: 24-hour claim payment guarantee (or they pay double!)
- Premium waiver: Family covered free for 6 months after main member dies
Who Can Apply:
You must be between 18 and 65 years old. You do NOT need to have an African Bank account. All covered people must have a South African ID book.
How to Apply:
- Visit www.africanbank.co.za or call them
- Complete the online application form
- Choose your cover amounts for each family member
- Use the online calculator to see your premium
- Set up your debit order
- No medical exams needed
Contact Information:
Phone: 0861 888 786
Website: www.africanbank.co.za
Underwritten by: African Bank Limited (FSP 46669)
Detailed Price Comparison Table
| Feature | Capitec | TymeBank | African Bank |
|---|---|---|---|
| Lowest Premium | R25/month (app) | R93/month | R22/month |
| Max Cover (Main) | R100,000 | R50,000 | R100,000 |
| Family Members | Up to 21 people | Up to 9 people | Up to 18 people |
| Waiting Period | 6 months (waived if switching) | Standard waiting period | Standard waiting period |
| Accident Cover | Double payout from day 1 | Standard payout | Standard payout |
| Extra Benefits | Pause option, newborn waiver, repatriation | Grocery benefit, R250 airtime | Cover increases every 6 months, 24hr payout |
| Need Bank Account? | Yes (Capitec) | Yes (TymeBank) | No |
| Apply Online? | Yes (app or branch) | No (kiosk only) | Yes (fully online) |
How to Choose the Right Funeral Cover for Your Family
Step 1: Calculate How Much Cover You Need
Think about what kind of funeral you want. Here’s a guide:
- Basic funeral: R15,000 to R25,000 (simple service, basic coffin, municipal plot)
- Standard funeral: R30,000 to R50,000 (decent coffin, some catering, transport)
- Traditional funeral: R50,000 to R100,000 (livestock, large gathering, all traditions)
Step 2: Count Your Family Members
Make a list of everyone you want to cover:
- Yourself (main member)
- Your spouse or partner
- Your children (biological, stepchildren, adopted)
- Your parents (and maybe your spouse’s parents)
- Extended family (grandparents, siblings, grandchildren)
Step 3: Check Your Budget
Be honest about what you can afford every month. Remember:
- It’s better to have some cover than no cover at all
- You can start small and increase cover later
- Missing payments can cancel your policy
- Most policies let you pause payments if you’re in trouble
Step 4: Compare Based on Your Situation
If you have very little money (under R50 per month):
Choose Capitec app – R25/month gives you basic protection. It’s better than nothing.
If you have R50-R150 per month:
Choose Capitec – You can get decent cover (R30,000-R50,000) for yourself and maybe your spouse. Add children as your budget grows.
If you need help with living expenses after death:
Choose TymeBank – The grocery benefit helps your family survive for 3 months while they arrange everything.
If you don’t have a bank account at these banks:
Choose African Bank – You don’t need to bank with them. Apply online from home.
If you have a large extended family:
Choose Capitec – Cover up to 21 people on one policy. This is cheaper than separate policies for everyone.
What About Other Banks?
Standard Bank Funeral Cover
Standard Bank offers funeral cover up to R100,000 but does not advertise low starting premiums. Their cover is more expensive because it’s aimed at middle-income earners. They won their “Product of the Year 2025” award in funeral planning, but they’re not the cheapest option.
FNB Life & Legacy Plan
FNB launched this in late 2024. Cover ranges from R100,000 to R1.5 million. This is designed for full life insurance, not just funerals. It’s expensive for low-income families.
ABSA Funeral Cover
ABSA offers funeral cover but premiums are not widely advertised. Based on 2024 information, their premiums are higher than Capitec and similar to Standard Bank. Not recommended for low-income families.
Nedbank Funeral Cover
Nedbank does not heavily market funeral cover to the mass market. Their insurance products are aimed at higher-income clients.
🚨 CRITICAL: How to Avoid Funeral Cover Scams
Funeral cover scams are VERY COMMON in South Africa. Criminals target low-income families with fake policies. You pay premiums for months or years, then discover there’s no real insurance when someone dies.
Common Funeral Cover Scams:
- Cash collectors: Someone collects premiums in cash door-to-door. No receipts, no company name, no policy documents.
- Facebook policies: Fake companies advertise on Facebook and WhatsApp. They look professional but are not registered.
- Fake debit orders: Scammers set up debit orders using stolen ID information. You don’t even know you “have” a policy.
- Burial societies: Some informal burial societies are legitimate. Others take your money and disappear.
- Too cheap to be true: Promises of R50,000 cover for only R10 per month. Impossible pricing means it’s a scam.
How to Protect Yourself:
1. Check the FSP Number
Every legal funeral cover provider must have a Financial Services Provider (FSP) number. This is like a license. Check it on the FSCA website.
How to check: Go to www.fsca.co.za → Click “FSP Search” → Enter the company name or FSP number
2. Get Policy Documents
Legal funeral cover ALWAYS gives you written policy documents. You must receive:
- Policy schedule (who is covered, for how much)
- Policy terms and conditions
- Name of the licensed insurer underwriting the policy
- FSP number and contact details
3. Know Who Underwrites Your Policy
The bank or broker selling you cover is NOT the insurer. Someone else underwrites (carries the risk). Ask: “Which licensed insurer underwrites this policy?”
Examples: Capitec policies are underwritten by Capitec Life. TymeBank policies are underwritten by Hollard Life.
4. Never Pay Cash to Individuals
Real funeral cover uses debit orders from your bank account. You should NEVER pay cash to someone collecting door-to-door. If they insist on cash, it’s a scam.
5. Use DebiCheck
DebiCheck is a system that lets you approve debit orders on your phone. This stops scammers from setting up fake debit orders. Always approve debit orders through your bank’s app or USSD.
6. Beware of Social Media “Policies”
The FAIS Ombud warns that Facebook and WhatsApp funeral groups are often scams. They have no physical offices. They’re not registered. They disappear when you need to claim. NEVER buy funeral cover advertised only on social media.
⚠️ Red Flags – Run Away If You See These Signs
- No physical address or office
- Can’t provide FSP number
- Asks you to pay cash directly to a person
- Promises cover is “guaranteed” with no waiting period for very cheap premiums
- Won’t give you policy documents
- Pressures you to sign immediately
- Only contactable on WhatsApp or Facebook
- Can’t tell you which licensed insurer underwrites the policy
- Spelling mistakes and unprofessional documents
- Asks for your bank PIN or full banking details
If You’ve Been Scammed – Take Action Immediately
Step 1: Stop All Payments
Contact your bank immediately. Stop the debit order. Request a reverse payment if possible (you have 40 days for unauthorised debit orders).
Step 2: Report to Authorities
Report the scam to multiple organisations:
- South African Police Service (SAPS): 10111 – Open a criminal case
- FSCA: 0800 110 443 or www.fsca.co.za – Report illegal insurance activity
- FAIS Ombud: 012 470 9080 or info@faisombud.co.za
- SAFPS (Fraud Prevention): 011 867 2234 or protection@safps.org.za
Step 3: Warn Others
Tell your family, friends, and community about the scam. Post warnings on social media. Help others avoid the same trap.
Step 4: Get Real Cover
Don’t let a scam stop you from getting proper protection. Choose one of the legitimate banks covered in this guide (Capitec, TymeBank, or African Bank).
✅ Your Consumer Rights with Funeral Cover
You Have the Right To:
- Receive clear policy documents in a language you understand
- Know exactly what is covered and what is excluded
- Cancel your policy within 31 days if you change your mind (cooling-off period)
- Get a fair claims process without unnecessary delays
- Complain if your claim is unfairly rejected
- Receive 31 days’ written notice before your insurer cancels your policy
- Be treated fairly regardless of your income level
If Your Claim Is Rejected:
First, contact the insurer and ask for a written reason. If you’re not satisfied:
- Write to the insurer’s complaints department
- If no response in 6 weeks, contact the FAIS Ombud (012 470 9080)
- The Ombud can investigate and force the insurer to pay if your claim is valid
- This service is FREE – you don’t pay the Ombud
Smart Tips for Applying
1. Start With What You Can Afford
Don’t overcommit. It’s better to have R20,000 cover you can pay for than R50,000 cover that you’ll cancel after 3 months. You can always increase your cover later.
2. Cover the Main Breadwinner First
If money is tight, get the highest cover for the person earning money. Their funeral will be most expensive and their death will hurt the family finances most.
3. Review Your Cover Every Year
Funeral costs go up every year. Check if your cover is still enough. Also add new family members (new babies, new spouse, aging parents who need cover).
4. Tell Your Family About Your Policy
Make sure someone knows you have funeral cover. Keep policy documents safe. Give a copy to a family member. Write down the insurer’s claim number and keep it with important documents.
5. Don’t Cancel Old Cover Until New Cover Is Active
If you’re switching from another funeral policy to a cheaper one, wait! Keep paying the old policy until the waiting period on the new policy is finished. You don’t want to be uncovered.
6. Read Everything Before You Sign
Even if it’s long and boring, read the policy documents. Check: waiting periods, exclusions (what’s NOT covered), premium increases, claims process. Ask questions if you don’t understand.
⚠️ Understanding Waiting Periods
Most funeral cover has a waiting period. This means if someone dies during the first few months, the policy won’t pay out (except for accidental death).
Typical Waiting Periods:
- Natural death: 6 months (Capitec, African Bank, TymeBank)
- Accidental death: No waiting period – covered from day 1
- Suicide: Usually 12 months waiting period
Waiting Period Waivers:
Good news! If you’re switching from another funeral policy, the waiting period can be waived. You need to:
- Show proof of your old policy (policy schedule)
- Show that the old policy was active 31 days before applying for new cover
- Provide a cancellation letter from the old insurer
Capitec is particularly good at waiving waiting periods if you switch from another licensed insurer.
Our Final Recommendations
For the absolute lowest price: Capitec Funeral Cover via their app (R25/month) is the cheapest option in South Africa for low-income families. You get flexible cover amounts and can add many family members.
For best value with extras: TymeBank Funeral Cover (R93/month) includes grocery assistance and airtime, which helps your family cope with immediate expenses after a death.
For flexibility without needing the bank account: African Bank Funeral Cover (from R22/month) lets you apply online without being their banking client.
Most important advice: Whatever you choose, make sure it’s a real, licensed funeral cover from a legitimate bank. Check the FSP number. Get policy documents. Never pay cash to individuals. Protect yourself from scams.
Remember: Some cover is better than no cover. Start small if needed. You can always increase your protection as your financial situation improves. The key is to have something in place to protect your family from the burden of funeral debt.
Important Contact Information
Capitec Bank
Phone: 0860 102 043
Website: www.capitecbank.co.za
FSP: 54090
TymeBank
Phone: 0860 333 118
Website: www.tymebank.co.za
Underwriter: Hollard Life
African Bank
Phone: 0861 888 786
Website: www.africanbank.co.za
FSP: 46669
FSCA (Complaints)
Phone: 0800 110 443
Website: www.fsca.co.za
Report scams & illegal insurers
FAIS Ombud
Phone: 012 470 9080
Email: info@faisombud.co.za
For claim disputes (FREE)
SAFPS (Fraud)
Phone: 011 867 2234
Email: protection@safps.org.za
Report fraud & ID theft
Disclaimer: This information is provided for educational purposes and was last updated in November 2024. Funeral cover premiums, requirements, and benefits may change. Always verify current information with official bank sources before making financial decisions. Premium amounts shown are starting prices and will vary based on age, cover amount, and number of family members covered.
For complaints or disputes about funeral cover, contact the Financial Sector Conduct Authority (FSCA) at 0800 110 443 or visit www.fsca.co.za. For claim disputes, contact the FAIS Ombud at 012 470 9080 (free service).