General Finance

How does the Capitec funeral plan work?

Capitec, like most other banks in South Africa, offers a funeral plan. Which is very competitive when compared with plans from other banks. This is an overview of how the Capitec funeral plan works.

What is a funeral plan?

A funeral plan pays out a lump sum to cover the expenses that arise when an insured person dies. These are expenses that are associated with the funeral, like buying a coffin, food, hiring tents and other expenses.

Not to be confused with life insurance, which covers the long-term consequences of the deceased. Which might result in loss of income for the family, it is meant to pay off debt, and for things like education and rent.

How does the Capitec funeral plan work?

With the Capitec funeral plan you can cover yourself and up to 21 dependants. Which is a lot, this means you can cover not only your family but your extended family as well. Of these 21 dependants, you can cover up to 4 parents, 8 children and 8 extended family members like your uncles and one spouse.

The maximum cover for the policyholder and the spouse is R100 000 and it drops to R50 000 for parents and extended family members while ranging from R20 000 and R60 000 for kids, depending on their age.

You can apply for this plan directly from the Capitec app, it’s structured in such a way that you only pay what you can afford. There is no standard premium, if for example you can only afford to pay R1 500 per month then Capitec will create a plan for you based on that. Which is great for a lot of people.

Another benefit to having this plan is that you can pause it for a period of 6 months, and then resume it any time you want within 6 months and still get full cover. The downside is that you won’t be covered for the period in which you have paused. This benefit has an initial waiting period of 24 months, then another 24 months after you have activated it.

It comes in handy when you are having a lot of stress on your finances, can be a much-needed break, until you get your finances in order.


This was an overview of how the Capitec funeral plan works. Do you have any thoughts or questions? Comment below.

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