Group Cover

Group Cover

Borokgo Capital Solutions , our Group Funeral Cover offers lump-sum death benefits to individual members of a group, also known as an individual funeral product underwritten on a group basis. This solution ensures affordable premiums while providing comprehensive protection for your loved ones during life’s most challenging times.

How It Works

To apply for this policy, the group must first approach the insurer to establish an individual product grouping. Once the group is set up, members can purchase funeral products at discounted group premium rates.

To qualify for this plan, the group must meet certain criteria, including a minimum group size and required participation rate. Key requirements include:

Minimum Group Size:

The group must consist of at least 50 primary members.

Group Premium Rate

Once the group qualifies, a tailored premium rate will be provided.

Individual Policies

Each group member can then take out an individual policy linked to the group.

Coverage Options

The following lives can be covered, provided there is an insurable interest between the policyholder (the legal entity) and the insured individuals:

• Main Member
• Spouse
• Children
• Parents and Extended Family

 Available Plans
Policyholders can select from various coverage options, with premiums calculated based on the chosen family plan:

Family Plan 1:  Covers the Main Member only
Family Plan 2: Covers the Main Member, Spouse, and up to 6 Children
Family Plan 3: Covers the Main Member, Spouse, 6 Children, 4 Parents under 84 years, and 4 Other Family Members up to 64 years.

Additionally, the Main Member can opt to insure additional family members, for an additional premium per insured life.

Definitions of Insured Lives

Main Member: The individual named as the Main Member on the policy. The Main Member can also be the Policyholder.
Spouse: A legally recognized partner, whether through marriage, civil union, or long-term partnership.
Parent: Biological parents, adoptive parents, or stepparents, grand parents,including in-laws.
Extended Family: Includes grandparents, siblings, cousins, aunts, uncles, nieces, nephews, and other extended relatives.

Maximum Coverage Limits

The maximum number of insured lives per policy is 26, including the Main Member. These lives are broken down as follows:

• 1 Main Member
• 1 Spouse
• 6 Children
• 4 Parents
• 4 other family members
• 10 Extended Family Members

Note: Stillbirth claims are excluded from this limit and are processed separately.

Coverage Amounts

Coverage amounts are subject to regulatory guidelines:

• Children (0–5 years):R20,000
• Children (6–14 years): R50,000
• All other insured lives: R100,000 (subject to an annual increase based on CPI inflation).

Eligibility Criteria

For coverage to apply, the following conditions must be met:

Residency: The Main Member and insured lives must be South African residents with valid permits.
Group Membership: The Main Member must be an active member of the group to qualify.
Identification: ID numbers are required for both the Main Member and Spouse.

Waiting Periods

The following waiting periods apply to all insured lives:

• No waiting period for accidental death after first premium has been received.
• 6 months for death due to natural causes.
• 12 months  for suicide.

Each waiting period begins from the start date of the coverage, which may vary for different insured individuals.

Policy Adjustments

Increase Coverage: If the Policyholder opts to increase coverage, a new waiting period will apply.
Decrease Coverage: If coverage is reduced, no new waiting period will be applied.
Beneficiary Updates: The Policyholder can update the nominated beneficiary once per year.
Personal Details: The Policyholder can request updates to personal details as needed.

General Exclusions

Benefits will not be paid for claims arising from the following situations:

• Participation in war, invasion, civil unrest, or military actions.
• Claims resulting from the use of nuclear, biological, or chemical weapons, radioactive contamination, or attacks on facilities such as nuclear plants.