Apply for a Cashback Funeral Policy

AVBOB’s Cashback Funeral plan is a whole-life policy that allows you to insure the entire family, parents, parents-in-law and extended family members.

With AVBOB’s Cashback Funeral Plan the policyholder can get cash back for every five claim-free years*. Provided there has been no claim over the entire five year period, AVBOB will give you your fifth year's premiums back in cash*.

MEMBER BENEFITS*

  • A six-month premium holiday in the event that the policyholder is retrenched.
  • Your own AVBOB Reward Account which becomes available at death or age 65* (only applicable to policies issued before 31 July 2018).

FREE FUNERAL BENEFITS* PROVIDED BY AVBOB FUNERAL SERVICE LIMITED, a separate entity within the AVBOB group

The following FREE funeral benefits* are available to all insured persons, provided the insured person has been covered under the policy for 24 months or longer:

  • A FREE basic funeral valued at R14 000, which includes the funeral arrangements, a specified coffin and hearse
  • A R3 000 immediate cash payment for initial expenses
  • A R3 000 discount on a tombstone, cremation or aquamation
  • FREE transport of the departed loved one within the borders of South Africa
  • FREE Member benefits value is R22 500

You get ALL this on top of your full policy pay-out – it’s all 100% FREE* to AVBOB members.

*Terms and conditions apply. **The discount on the tombstone is valid for 18 months from the date of the funeral and on condition that AVBOB Funeral Service provides the tombstone. Aquamation is currently only available at AVBOB in Cape Town and Pretoria. FREE funeral benefits only apply if AVBOB Funeral Service conducts the funeral. AVBOB Mutual Assurance Society is a licensed life insurer and authorised Financial Services Provider. FSP 20656. AVBOB is a level 1 B-BBEE contributor.

For policies that have been in force for less than 2 years, AVBOB Funeral Service Limited provides discounts on funeral services.

Contact 0861 28 26 21 or visit your local branch to find out more about the funeral discount relevant to your policy.

Cashback Funeral Policy Privileges, Conditions and Provisions

Policyholder

The person who entered into this contract with AVBOB

Main Insured Person

The person nominated by the policyholder as the primary insured person under this policy. It can be the policyholder or someone else. If it is someone else, there must be insurable interest.

Insured Person

Any person who is covered by this policy and whose full names appear in the policy schedule.

Insured Amount

The amount payable by AVBOB when death occurs.

Premium

The amount payable by the policyholder to procure the payment of the insured amount when the insured event occurs. This amount is payable monthly in advance and must be paid every month for cover to be provided.

Insurer

The party (in this case AVBOB) who bears the risk for payment of the benefit to another party, when the named insured event occurs.

Premium Payer

The person who undertakes to pay the premiums per debit order / stop order / cash.

Premium Debt

When a policyholder does not pay premiums, AVBOB can make these unpaid premiums a debt on the policy if the policyholder so requests. There is no interest charged on this debt and it will be deducted from a claim or cashback payment. There are only certain instances when AVBOB will grant the request, for example:

  • If AVBOB discovers that wrong information was provided regarding the age of a person insured on the policy. This can mean that the premium paid for the person is not in line with the cover provided. In this case, AVBOB will adjust the premium accordingly. The correct premium may be more than the incorrect premium. The difference between the correct premium and the incorrect premium will then be placed as premium debt on the policy.
  • If the policy lapsed and is reinstated, arrear premiums may be placed as premium debt on the policy but may not exceed the maximum of six (6) premiums.

Persons involved

The main insured person/premium payer is the policyholder. This person holds the policy and can exercise the rights in terms of it.

The premium payer is the person that pays the premiums for this policy. In this policy, the premium payer is also the policyholder.

The policyholder and premium payer is also the main insured person. Any person, including the main insured person, that is covered under this policy is known as an insured person. Their names must be listed in the policy schedule. The main insured person and all other insured persons must be South African citizens.

Beneficiaries are those people that the policyholder have chosen to receive the claim amount if they die.

Paying out benefits

When the person who died is not the policyholder:
We will pay the claim amount in terms of the person who died, to the policyholder.

When the person who died is the policyholder:

  • We will pay the claim amount in equal parts to the beneficiary(ies) listed in the policy schedule.
  • If no beneficiaries are listed in the policy schedule or the listed beneficiaries are not alive anymore, we will pay the benefits in the following order: firstly, the spouse of the policyholder, secondly, their children covered under this policy, thirdly, the next insured person in the policy schedule and lastly a person appointed by the family of the policyholder to receive the funds. If none of these is present, we have to pay the claim amount to the estate of the policyholder. If we have to pay the money to the estate, a letter of executorship/authority is required and the claim may take longer as the Estate first has to be registered.

If this policy lapsed or has been cancelled no benefits will be paid out to anyone and no premiums will be refunded if the cooling-off period has already expired.

Breadwinner Benefit

If the policyholder dies, the policy will stay in place for the surviving insured person(s) named on the policy schedule. This is known as the breadwinner benefit. These insured persons will not have to pay any more premiums for this cover. The following rules apply:

  • If the death happens in the first ten years of the policy, the policy will stay in place for the surviving spouse (covered under the spouse benefit), children (covered under the children’s benefit) and parents (covered under the parent benefit), as long as their names are listed in the policy schedule. This benefit does not cover any extended family listed in the policy schedule and their cover will fall away.
  • If the death happens after the policy has been in place for more than ten years, the policy will stay in place for the surviving spouse (covered under the spouse benefit), children (covered under the children’s benefit), parents (covered under the parent benefit) and the extended family members (covered under the extended family benefit), if their names are listed in the policy schedule.
  • The cover for the surviving spouse, parents and extended family members (if applicable) will stay in place until they die, and they will not have to pay any more premiums for this cover.
  • Surviving children will stay covered until their 21st birthday, or, if they are full-time students, until their 26th birthday, or until they die, if that happens before the age of 21 (or 26 if they are full-time students).
  • From time to time, we will work out the insured amount that will be paid on the death of the surviving insured person(s), but this amount will never be less than 50% of their insured amount at the time of the death of the policyholder.

If the policyholder dies and the claim is not successful for any reason (like if they die during the waiting period from natural causes), the policy will then be cancelled and all the surviving insured persons on the policy will lose their cover and we will keep the premiums that have been paid on this policy. The spouse of the policyholder is, however, allowed to take out their own policy (see the ‘option to continue cover’ section below).

Policy ownership after the death of the policyholder

If the policyholder dies and the claim is acknowledged, one of the surviving insured persons will become the new policyholder. This will be decided in the following order:

  1. Spouse
  2. Father
  3. Mother
  4. Oldest child over the age of 18 years
  5. Father-in-law
  6. Mother-in-law
  7. Oldest child under the age of 18 years
  8. Oldest extended family member (if applicable)

The new policyholder will not be able to make any changes to the policy except to change the beneficiary(ies) on the policy.

Option to continue cover (Only applicable if the Breadwinner benefit was not granted)

If the policyholder dies during the waiting period and there is no breadwinner benefit in place, the surviving spouse listed on the policy schedule can apply for their own policy. This can only be done if the spouse applies within three months of the death and if that surviving spouse is younger than 65 years. If this new policy is approved, only the waiting period that was left over from the original policy will apply to the new policy. The surviving spouse may remove persons covered under this policy, from the new policy, but may not add new insured persons. Under the new policy, the surviving spouse is allowed to lower the insured amount and premium, but may not increase these amounts.
All the insured persons will only have cover from the start date of the new policy – in other words, the insured persons will not have cover from the date that the claim for the death of the policyholder was received until the start date of the new continuation policy. The left over waiting period will begin on the issue date of the new policy.

Beneficiary

Beneficiaries are those people that the policyholder has chosen to receive the claim amount if they die.

The beneficiaries will no longer receive the benefits if the policy ends for any reason other than the death of the main insured person or at the request of the policyholder.

If the beneficiaries have already died by the time there is a pay-out on this policy, the appropriate death certificate(s) of the beneficiary or beneficiaries will be required as proof. We will pay the benefits in the following order: firstly, the nominated beneficiary(ies), secondly, the spouse of the policyholder, thirdly, their children covered under this policy, fourthly, any other insured person, and lastly, the person appointed by the family of the main insured person to receive the money. If none of these is present, we have to pay the claim amount to the estate of the main insured person. If we have to pay the money to the estate, a letter of executorship/authority is required and the claim may take longer as the estate first has to be registered.

Insurable interest

The policyholder can take out insurance on their own life, and also on the lives of others. If they take out insurance on the lives of others, they must have an interest in the life of that person that can be protected in terms of the recognised principles of insurance law. This interest is known as an insurable interest. A claim in terms of this policy may be declined if the policyholder is not able to prove that they had an insurable interest in the insured person.

We see relationships between the policyholder and the following persons that may be covered under additional benefits (in alphabetical order) as possibly having insurable interest: Additional parent, additional spouse, additional spouse’s daughter, additional spouse’s son, aunt, brother, brother-in-law, child (own, step and legally adopted), cousin*, daughter-in-law, father, father-in-law, foster child, foster father, foster mother, grandchild, grandparent, legally adopted child, mother, mother-in-law, nephew**, niece**, own adult child, spouse, sister, sister-in-law, son-in-law, step child, stepfather, stepmother and uncle.

*A cousin is the child of the uncle or aunt of the policyholder.
**A nephew or niece is the child of the brother, sister, brother-in-law or sister-in-law of the policyholder.

Claims

We will pay the insured amount on this policy to policyholder, or the person(s) who are listed in the policy document as beneficiaries. This payment will only be made once we received a claim form that has been fully and correctly filled in as well as all the other documents needed for the claim. If the policyholder does not make the claim, the person making the claim will need to give us proof (like a death certificate) that they died.

Claim payments will only be made if the premiums on this policy have been paid in full at the time of death of the insured person and the claim is accepted.

Should a person covered under this policy die, please contact the AVBOB Call Centre on 0861 28 26 21 and the agent will assist you with how to proceed with the claim and the removal of the deceased from the place of death.

Persons involved

The premium payer is also the policyholder. This person holds the policy and can exercise the rights in terms of it.

The premium payer is the person that pays the premiums for this policy. In this policy, the premium payer is also the policyholder.

The main insured person is the person on whose life the policyholder takes out insurance.

Any other person that is covered under this policy (including the main insured person) is known as an insured person. Their names must be listed in the policy schedule. The main insured person and all other insured persons must be South African citizens.

Paying out benefits

The policyholder is regarded as the beneficiary under this policy. In the event of the death of any of the insured persons, the benefits shall be payable to the policyholder.

If this policy lapsed or has been cancelled no benefits will be paid out and no premiums will be refunded if the cooling-off period has already expired.

Transfer of Ownership

When the policyholder dies, a person who has an insurable interest in the main insured person has the option to apply, within three months of their death, to transfer the policy with all its rights and obligations, to them.
If the policyholder cannot continue with premium payment for whatever reason, a person who has an insurable interest in the main insured person has the option to apply, within three months of payment of the last premium, to transfer the policy with all its rights and obligations, to them.

Insurable interest

The policyholder can take out insurance on their own life, and also on the lives of others. If they take out insurance on the lives of others, they must have an interest in the life of that person that can be protected in terms of the recognised principles of insurance law. This interest is known as an insurable interest. A claim in terms of this policy may be declined if the policyholder is not able to prove that they had an insurable interest in the insured person. We see relationships between the policyholder and the following people (in alphabetical order) as possibly having insurable interest: aunt, brother, child (own, step or legally adopted), employee, grandchild, grandparent, nephew**, niece**, parent, spouse, sister and uncle.

We also see relationships between the main insured person and the following insured persons that may be covered under additional benefits (in alphabetical order) as possibly having insurable interest: Additional parent, additional spouse, additional spouse’s daughter, additional spouse’s son, aunt, brother, brother-in-law, child (own, step or legally adopted), cousin*, daughter-in-law, father, father-in-law, foster child, foster father, foster mother, grandchild, grandparent, legally adopted child, mother, mother-in-law, nephew**, niece**, own adult child, sister, sister-in-law, son-in-law, spouse, step child, stepfather, stepmother and uncle.

*A cousin is the child of the main insured person’s uncle or aunt.
**A nephew or niece is the child of the main insured person’s brother, sister, brother-in-law or sister-in-law.

Claims

We will pay the insured amount on this policy to the policyholder. This payment will only be made once we received a claim form that has been fully and correctly filled in as well as all the other documents needed for the claim. If the policyholder dies, the person taking over the policy will need to give us proof (like a death certificate) that they died.

Claim payments will only be made if the premiums on this policy have been paid in full at the time of death of the insured person and the claim is accepted.

Should a person covered under this policy die, please contact the AVBOB Call Centre on 0861 28 26 21 and the agent will assist you with how to proceed with the claim and the removal of the deceased from the place of death.

About the policy

Our contract

The policy is a contract between us, AVBOB Mutual Assurance Society and the policyholder. We are a licensed insurer in terms of the Insurance Act No. 18 of 2017. We are also an authorised financial service provider (FSP) and our FSP number is 20656. The following documents form part of the contract:

  • the application form;
  • the welcome letter;
  • the policy schedule;
  • the policy document with annexures; and
  • any other official communication that we send to the policyholder.

The policy contains separate contracts of insurance for each insured person with related policy benefits for whom a separate premium is paid. The premium as stated in the policy schedule is the total premium that the policyholder has to pay for all contracts of insurance concluded.

When the policy and cover starts

The date we accept the application and start to communicate with the policyholder by way of SMS or e-mail, is known as the policy issue date.
Cover for all the insured persons in terms of the policy, starts on the first day of the month in which we expect to receive the first premium for this policy. This is known as the policy start date.

Maximum prescribed limit

The maximum aggregated amount of cover that we can provide per insured person in terms of this policy, is R100,000.00, escalating annually from 1 June 2018 by the Consumer Price Index (CPI) annual inflation rate published by Statistics South Africa. This amount includes the insured amount as well as the accident and survivor benefits (where applicable).

What is a premium and when must it be paid?

A premium is the amount of money that must be paid in advance every month by the policyholder to keep the cover in place. All premiums are due on the 01st day of each month, but we prefer to take the premium from the bank account or salary of the policyholder, depending on the choice of payment, on the date that they receive their salary/income.
The premiums will increase yearly on the policy anniversary date by a rate not exceeding 10% and the insured amount will increase by an amount equal to two thirds of the premium percentage increase.
Increase in insured amount and premiums
We will raise the insured amount(s) and premium(s) (as well as the policy fee) of the policy on the policy anniversary every year. This date is shown on the policy schedule. This happens so that the amount of cover given by the policy keeps up with the rising costs of funerals and other costs. The premium(s) will go up by no more than 10% per year and the insured amount(s) will go up by an amount equal to two thirds of the premium percentage increase. This yearly increase will take place every year, as long as the policy is in place and all premiums are paid.
We will send a notice about the increase before it happens every year. The yearly increase can be cancelled if the policyholder does not want the policy to go up for that year, by letting us know, in writing, at least one month before the policy anniversary. In this case, the premium and the insured amount will stay the same for another year.

Premium debt

When there are premiums owing on a policy, we can treat these outstanding premiums as debt on the policy. There is no interest charged on this debt. However, the premium debt is not a compulsory action. We may take decisions to apply premium debt only under certain conditions. For example if we find out that wrong information was given about any insured person’s date of birth on the policy. This could mean that the monthly premium is not enough for the insurance cover provided. In this case, we might have to work out a new premium that is more than what the policyholder has paid. The total difference over time between the new premium and the old premium can then be placed as an interest free debt on the policy. This type of debt will not cause the policy to lapse. The total amount of debt is limited to six unpaid monthly premiums during the lifetime of the policy. The policyholder can pay the debt to us at any time. If the debt is not paid, we will take it off from the first claim or cashback payment made on the policy. This means that the amount paid will be less than what was claimed.

Type of work, Residence and Travel

This policy will stay in place even if any of the insured persons listed in the policy schedule, take up another job, move to another place or travel to any place in the world.

Exclusions that apply to the policy

Suicide

If an insured person commits suicide within six months after the policy issue date or within six months after that person was added as an insured person on the policy, we will not pay a claim on that insured person’s life. We will also keep the premiums that were paid for that person’s cover until the time of the suicide.

Breaking the law

If an insured person dies while committing an act which has been labelled as a criminal offence and is regarded as being illegal, we will not pay a claim on that insured person’s life. We will also keep the premiums that were paid for that person’s cover until the time of their death.

Correct Age

The policyholder must make sure that all information given on the application form is true and correct. Before any policy benefit can be paid, we will need proof of the age of the insured person(s), in the form of a certified copy of their identity document. We will not consider a claim without a valid identity document. If we find out, at any time, that the age of the insured person was not correct, the premium for that person will be worked out using the correct age. If the insured person is older than was stated on the application, a higher premium may be needed for their cover. If this is the case, we will make the amount that is owed for the higher premium an interest free premium debt on the policy and the amount will be taken off from the first claim or cashback payment made on the policy. If the insured person is younger than was stated on the application, the extra money paid on the premiums will be paid back to the policyholder without any interest.
If we work out the premium again using the correct age and find that the insured person is above the age limit on the policy, they will be removed from the policy. The premiums that were paid for this insured person will be paid back to the policyholder without any interest.
If an insured person is found to be insured under an incorrect benefit, that person will be moved to the correct benefit if possible, and the premium for their cover will be worked out again. For example, if a person is covered under the parent benefit, but they are actually an extended family member, like an uncle, that insured person will be moved to the extended family benefit, if possible. Then, the part of the premium that covers that person will be worked out again using the rate for the extended family benefit. If this means that higher premiums should have been paid for their cover, we will make the amount owed on these premiums an interest free premium debt. This owed amount will then be taken off from the first claim or cashback payment made on the policy. If the premium payable for this insured person is worked out to be less than has been paid, we will pay the money back to the policyholder without any interest. If the insured person cannot be moved to the extended family benefit (like when there are already six people covered under the benefit) the cover will be cancelled for this insured person and all premiums that were paid for this person will be paid back to the policyholder without any interest.

Grace period

A premium must be paid before or on the first day of each month for all the insured persons to have cover. If a premium is not paid on the due date, a grace period will apply on the policy. We offer all policyholders a grace period of the calendar month after the premium due date in order to pay any missed premiums. Please note, however, that should the policyholder fails to pay during this period, all cover under this policy will stop after the grace period has passed at the end of the calendar month in which the policyholder failed to pay the premium. Should the full monthly premium not be paid on the due date, the policyholder will receive notification from us alerting them to this fact. Please note that there will be no cover if the policyholder misses a premium payment after the grace period has passed.

Expiry of cover

None of the insured person(s) will have cover if the policyholder fails to pay the premium by the end of the grace period.
We can explain this as follows: Let us assume the premium for the month of March is due on the 01st of March. If the policyholder does not pay the premium, all cover will expire on the 1st of April. So, if a death happens during March and the policyholder did not pay the premium, all the insured persons will still have cover because they are in the grace period, but we will deduct the March premium from the claim amount. If a death happens during April and they still did not pay the premiums for March during the grace period, the policyholder will not be able to claim on the policy because there will not be cover anymore.
If the policyholder pays only one premium during April (remember the policy is now two premiums behind) the premium that they paid will be seen by us as the premium for March. If a death now happens during April, we will consider the claim because although they had to pay the premium by or on the 01st of April, the grace period ends only at the end of April. If this happens the premium for April will be taken off from the claim amount.

The lapse of a policy

This is when the policy ends due to non-payment of premiums. There is a difference between when the policy lapses and when cover expires. What happens if cover expires is already explained above. The policy will lapse after the policyholder did not pay three full premiums (and not necessarily in a row). When the policy lapses, all cover under the policy ends and therefore no claim will be considered. We will notify the policyholder of the lapsing of the policy. We will not pay back any premiums that were paid on the policy before it ended.

Reinstatement of the policy

This is when a lapsed or cancelled policy is restored to an active policy.
If the policy lapsed or was cancelled and the policyholder wishes to reinstate it, they may ask us in writing to do so. The policyholder has to do it within three months from the date that the policy lapsed or was cancelled. We will decide if the policy can be reinstated. If the policy is reinstated, only the part of the waiting period, if any, that was left over when the policy lapsed or was cancelled, will still apply to the policy. All the premiums that were not paid will have to be paid before the policy can be reinstated. If these premiums can’t be paid, we may put the total amount owing onto the policy as an interest free premium debt. This can only be done for a maximum of six unpaid monthly premiums. If more than six monthly premiums are owing, or if there was already premium debt on the policy before it lapsed or was cancelled, the policy will only be reinstated when the unpaid monthly premiums have been paid.
If the policy had lapsed while the six-month waiting period had already expired, no waiting period will be imposed if the policy is reinstated within three months after the policy had lapsed provided all the outstanding premiums are paid. No claim will be considered if the policy is reinstated after the insured event has taken place during the time when the policy was no longer in force.

Provisions applicable to children

The total insured amount under this policy and any other policies in respect of any child under the age of 14 years shall not exceed the amount provided in Section 55 of the Long-Term Insurance Act 1998, or as amended or substituted from time to time. These amounts are as follows:

  • The maximum insured amount per child under the age of 6 years is R20 000.
  • The maximum insured amount per child from 6 years to 13 years is R50 000.

Premium review

We may review the policy premiums and benefits every year. This is to make sure that the premiums are still enough to cover the benefits offered by the policy. If there are any changes to premiums or benefits because of this review, we will inform the policyholder.

Waiting Period

The cover in terms of this policy may be subject to a waiting period. A waiting period refers to a time during the life of an active policy when no benefit will be paid if a claim event happens, unless the insured person dies accidentally. The policy has a waiting period of six months from the policy issue date. This means that if any of the insured persons under this policy die as a result of natural causes, the benefit will not be paid. A claim will be considered only after the six-month waiting period from the policy issue date has been completed and six premiums were received from the policy start date. If the waiting period has passed but six premiums were not received from the policy start date when a claim happens, we will reduce the claim amount payable with the outstanding part of the six premiums that is still payable for the insured person who died. There is no waiting period for accidental death. An accidental death claim will only be paid during the waiting period if the policy started and we received the first premium.
If you took out funeral cover with another insurer and that policy lapsed or was cancelled within 31 days before the issue date of a new policy with us, the whole, or a part, of the waiting period may be waived. If the waiting period under the previous policy had expired, no waiting period will be imposed under this policy. If the waiting period under the previous policy had not expired at the time of entering into this policy, the waiting period equal to the unexpired part of the waiting period under the previous policy will be imposed by AVBOB, if the new policy provides the same or a lesser amount of funeral cover relating to the same insured person as those covered under the previous policy. In order to waive the waiting period (partially or in total), proof of the start date, premiums paid to date, insured person, insured amount and the cancellation date of the previous policy from the previous insurer, will be required at application or at claim stage if not provided at application stage.

Recovery of Debt

Before we pay the insured amount when a claim is made, any debts owing on the policy, like premium debt or premiums still due in the grace period, will first be taken off the insured amount. This means that if there are debts on the policy, the amount paid will be less than the insured amount.

Other rules

This policy may have other rules that could be issued after this policy, that apply to it. If there is a disagreement about the policy between us, the information in this original policy document, together with the policy, will be used to solve the disagreement.

Commission

A commission on this policy is paid to the intermediary that sold the policy to the policyholder. We calculate the commission in terms of the laws that apply to it.

Unclaimed benefits

If benefits were not fully paid out at claim stage, the beneficiary can claim those benefits at any time in the future. If no claim was made, we will try to find the person who must receive the benefit payments within six months of the date on which the benefit became payable. If the person cannot be found, we will try to find them again in the next three years and then again after ten years if the benefits have still not been claimed by then. If after ten years the person still can’t be found, we will ask an outside tracing company to try and find them.
The only time that we will not try to find a person who is owed a benefit payment, is if the amount of that payment is less than R1,000.00 and the costs of trying to find the person is more than this amount.
We can take any costs involved in finding any person who needs to get a benefit payment off the total amount that is paid out to them. The costs involved in finding the people who should receive benefits may change over time.
It is the duty of the policyholder to tell us about any changes to the contact information and the contact information of any beneficiaries listed in the policy schedule. If we need to use an outside tracing agency to find anyone listed in the policy schedule, this information will be given to that tracing agency.

The policyholder may cancel the policy

The policyholder has 31 days from the date that they received our welcome letter to check the policy and make sure that all the information is correct. Should they find any mistakes, or if there is anything they are not happy with in the policy, they must let us know within these 31 days from the date that they received our welcome letter. The policyholder is also allowed to cancel the policy in this 31-day period if they want to. They can do this by sending us a fax or email, or calling us.

Important note that applies to this document

The spouse benefit, children’s benefit, parent benefit, extended family benefit and survivor benefit (together referred to as “the additional policies”) offered to the policyholder, are offered separately and independently from the main policy issued to them (“the basic policy”). The policyholder is entitled to apply in terms of the application form for either the basic policy or the basic policy and one or more of the additional policies, in return for which a premium set out in the application form in respect of each policy, will be payable. Upon our acceptance of the application, a separate insurance contract shall come into force between ourselves and the policyholder in respect of the basic policy and the additional policies severable from each other. Such separate policies are intrinsically linked. The additional policies can be amended or cancelled separately from the main policy, however, in the event that the main policy is ended, the additional policies will end at the same time. We will also issue a single policy contract in respect of the separate policies. For this reason, all references to “policy” or “application” or “premium” includes a reference to the plural of such terms to the extent that multiple policies are concluded. The premium reflected in the policy schedule is the total premium due for all policies concluded in terms of this policy contract.

Suitability of cover over time

The cover under this policy increases yearly, but the policyholder must still make sure that the cover remains suitable for their needs as time goes on. Funeral costs rise over time. Life events like marriage, divorce, birth or adoption of children, or changes in family dynamics, can change the funeral insurance needs they may have. Please speak to an AVBOB intermediary about making changes to the policy as needs change.
Details when lodging a complaint
Go to AVBOB's complaints resolution procedure by clicking here

This policy offers a cashback benefit. This means that, after every five years, if there have been no claims on the policy, we will pay all the premiums of the fifth year back to the policyholder in cash. The rules below apply to this benefit:

  • To get the cashback benefit, all 60 premiums (12 premiums per year for five years) must be paid for each five-year period.
  • If a claim was made, and paid, on the policy, the five-year cashback period will start again from the first day of the month in which the death happened.
  • If the claim is turned down by us, the cashback period will carry on as normal.
  • If a death happens before the cashback payment, but a claim is only made after the cashback benefit has been paid, the amount of the cashback payment will be taken off the claim payment amount. If the amount of the claim is less than the cashback payment, the amount of the cashback that is still owing will be placed as an interest free cashback debt on the policy. This amount will then be taken off the next claim or cashback payment.
  • The cashback benefit will only apply to premiums paid for the insured persons covered on the policy for the full five-year cashback period. If another insured person is added onto the policy during the five-year cashback period, the premiums for that person will only be added to the amount paid out for the next cashback period.
  • If the policy lapsed during a five-year cashback period and it is then reinstated within three months from the date that it lapsed, the cashback period will stay the same.
  • The cashback payment can only be taken in cash.

This benefit only applies to the main insured person. It is not available to any other insured person in the policy, like the spouse, children, parents or extended family members.

If the main insured person dies because of an accident, like a car accident, or a violent act, like murder, we will pay an extra amount that is the same as the insured amount shown in the policy schedule, or a maximum of R20,000.00 if the insured amount is more than R20,000.00. This will only be paid if:

  • the death happens before the 60th birthday of the main insured person;
  • the accident occurs after the start date of the policy;
  • the policy is in place;
  • the policy is paid to date;
  • the cause of death is only from an accident, like a car accident or a violent act, like murder; and
  • the death happens within ninety days of the accident.

This benefit will not be paid if the death was because of suicide, or attempted suicide, or if the main insured person injures themselves on purpose. We will also not pay the benefit if it is found that the main insured person was over the legal alcohol limit at the time of the accident that caused the death (blood alcohol more than 0.05 gram per 100ml), or under the influence of narcotics, drugs or other stimulants. We will also not pay the claim if the accidental death is caused during hunting, mountain climbing, racing, boxing, wrestling, war, riot, civil uproar, terrorism or military actions, or if it results from anything that involves breaking any law.
Also, if the death happens while the main insured person is taking part in any flying actions, other than as a paying passenger on, or as an employee of, a commercial airline, we will not pay the benefit.
The extra amount of cover that may be paid out depends on the amount of cover that the main insured person has and include the insured amount and survivor benefit. As provided for in law, the total pay-out may not be more than R100,000.00. The amount payable for the accident benefit will be calculated by taking into account the insured amount and the other pay-outs mentioned above. It will, however, never be more than the insured amount and only up to a maximum of R20,000.00.

Insured person

Cover can be provided for the spouse of the main insured person. We recognize the following persons as the spouse, namely a person,

  • to whom the main insured person is married in terms of a marriage or customary union recognised by the laws of South Africa;
  • with whom the main insured person is in a union recognised as a marriage in keeping with the principles of any faith;
  • with whom the main insured person are in a same-sex or heterosexual union that is planned to be permanent.

The policy schedule shows the name of the spouse covered under this policy.

Insured amount

We will pay the insured amount on the death of the spouse covered under this benefit. The policy schedule shows the insured amount of the spouse.
The insured amount and premium of this benefit will increase yearly on the policy anniversary at the same rate that the insured amount and premium of the basic policy increase.

Waiting period

Please refer to the section called waiting period.

Limitations

  • The spouse must be younger than 65 when the policy or benefit starts.
  • The insured amount of the spouse may not be more than the insured amount of the main insured person.
  • The maximum insured amount for the insured person on this policy is R50,000.00.
  • If we find that the spouse is above the age limit on the policy, the benefit will be cancelled and all premiums that were paid for this spouse will be paid back to the policyholder without any interest.
  • Only one spouse can be covered under this benefit. Any additional spouses must be covered under the extended family benefit.
  • If it is found that the person that was included as a spouse is not the spouse of the main insured person in terms of our rules, that person will be moved to the extended family benefit (if possible), if the main insured person has insurable interest in this person. The premium for this changed cover will be worked out again using the rates of the extended family benefit. If there is a shortfall in premiums payable for this different cover (extended family benefit) this amount will be placed as an interest free premium debt on the policy and it will be taken off from the amount paid out for the first claim or cashback payment on the policy. If this person cannot be moved to the extended family benefit (like when there are already six people covered under the benefit or if we find that the main insured person does not have insurable interest in this person), the cover will be cancelled for this person and all premiums that were paid for this person will be paid back to the policyholder without any interest.

Removing the insured spouse

The insured spouse can be removed from the policy after the start date of the policy or benefit. If the spouse is removed from the policy, the benefit will be cancelled and we will keep all the premiums that were paid for this spouse’s cover so far. The total premium amount on the policy will then decrease by the amount of the premium that was paid for the removed spouse’s cover.
The same spouse may, within three months of the date of removal, be added back to the policy at the request of the policyholder. No waiting period will apply except the left over waiting period of the original waiting period, if any. The start date of the spouse will also stay the same as before the removal. All the premiums that were not paid will have to be paid before the spouse can be added back to the policy. If these premiums cannot be paid, we may put the total amount owing onto the policy as an interest free premium debt. This can only be done for a maximum of six full unpaid premiums. If more than six full unpaid premiums are owing, or if there was already premium debt on the policy before the spouse has to be added, the spouse will only be added back on the policy when the unpaid premiums have been paid. The total premium payable will increase with the premium amount of the added spouse.
If the same spouse is added again after the above-mentioned three months, a new premium will be worked out based on the age of the spouse at the time they are added back on. A new six month waiting period will apply to this new benefit from the start date of the added benefit if they die because of natural causes, like a heart attack. The total premium payable will increase with the premium amount of the added spouse.

Adding a new spouse

If an insured spouse under the spouse benefit is removed from the policy, a new spouse (and new spouse benefit) can be added to the policy if the policy is in place and paid to date. A spouse who died, cannot be replaced by another one, whether the claim was paid or not. The total premium payable will increase with the premium amount of the added spouse. A new six-month waiting period will apply. Please refer to the section called waiting period.

Insured person(s)

This policy can include cover for all unmarried children of the main insured person (own children, stepchildren, legally adopted children, as well as own children, stepchildren or legally adopted children that are born or adopted after the start date of the policy, including stillborn children). The policy schedule shows the names of the children covered under this benefit.

Insured amounts

A child older than 21 years:

We will pay one of the under-mentioned amounts (depending on the chosen benefit) if the death happens on or after the child’s twenty-first birthday, but before their twenty-sixth birthday. The child must be a full-time student at a registered education institution and fully dependent on the main insured person. The child may not earn any income. Part-time students will not have cover under this benefit after the age of 21.
KV5: R10 000
KV6: R15 000
KV7: R30 000

A child older than 14 years but younger than 21 years:

We will pay one of the under-mentioned amounts (depending on the chosen benefit) if the death happens on or after the child’s fourteenth birthday, but before their twenty-first birthday.
KV5: R10 000
KV6: R15 000
KV7: R30 000

A child older than 6 years but younger than 14 years:

We will pay one of the under-mentioned amounts (depending on the chosen benefit) if the death happens on or after the child’s sixth birthday, but before their fourteenth birthday.
KV5: R6 000
KV6: R10 000
KV7: R20 000

A child up to 6 years (including stillborn):

We will pay one of the under-mentioned amounts (depending on the chosen benefit) if the death happens before the child’s sixth birthday. In the case of a stillborn child, the benefit will only be paid if the mother was pregnant for at least 26 weeks, but the child showed no sign of life after complete birth. The stillborn benefit is only applicable to the mother of the stillborn child who is the policyholder or the spouse of the policyholder.
KV5: R3 000
KV6: R7 500
KV7: R10 000

The insured amount and premium of this benefit will increase yearly on the policy anniversary at the same rate that the insured amount and premium of the basic policy increase.
A stillborn child is a child with whom the mother was pregnant for at least 26 weeks, but showed no sign of life after complete birth.

Waiting Period

Please refer to the section called waiting period.

Limitations

  • If it is found that a child under this benefit is not the own child, stepchild or legally adopted child of the main insured person, or is over the age of 21 and not a full-time student or disabled, this child will be moved to the extended family benefit (if possible), if the main insured person has insurable interest in this person. The premium for this child will then be worked out using the rates of the extended family benefit. Any shortfall of the premiums payable for this cover (extended family benefit) will be placed as an interest free premium debt on the policy and it will be taken off from the amount paid out for the first claim or cashback payment against the policy. If the child cannot be moved to the extended family benefit, like when there are already six people covered under the benefit or if we find that the main insured person does not have insurable interest in this person, the cover will be cancelled for this child. No premiums will be paid back as the policyholder pay for the children’s benefit and not for each child insured under this benefit.
  • If a claim is made against this benefit and the name of the child who died is not listed in the policy schedule, we will need to be given proof that they were in fact the child of the main insured person.
  • The maximum insured amount under this policy and any other policy, for children under the age of 14 years may not be more than the amounts listed below:
    • Children under the age of 6 years: R20,000.00
    • Children aged 6 years to 13 years: R50,000.00

If this policy covers a child younger than 14 years under this benefit for more than these amounts, and that child dies, we will only pay the above-mentioned amounts and will not pay back the extra premiums for that cover.

Removing an insured child

An insured child can be removed from the policy after the start date of the policy or benefit. If a child is removed from the policy, there will be no change to the premium payable for the children’s benefit.
The same child may, within three months of the date of removal, be added back to the policy at the request of the policyholder. If the waiting period of the children’s benefit is over, there will be no waiting period. If not, only the waiting period that is left on the benefit will apply to the added child.
The policyholder can apply to move a child that was covered under this benefit to the extended family benefit (if possible). The move must take place within three months of the child’s cover expiring under the children’s benefit (at age 21 if not a full time student, or age 26 if a full time student or when they stop being a child in terms of general law). There will be no waiting period except for the left over waiting period on this benefit, if any. The start date of the child will stay the same. If there is an extended family benefit on the policy, the insured amount will be the same as the amount of the benefit at the time the child is moved. If there is not an extended family benefit on the policy, the maximum insured amount of the child is limited to R30,000.00 and may not be more than the insured amount of the main insured person. Premiums will be worked out according to the insured amount and the age of the child at the time the child’s cover expired. The total premium payable will increase with the premium amount of the child who was moved.

Adding a new child

A new child can be added to this benefit after the start date of the benefit, if the policy is in place and paid to date. We will need to be given proof that the added child is the own child, stepchild or legally adopted child of the main insured person. No extra premium is payable. If the waiting period of the children’s benefit is over, there will be no waiting period. If not, only the waiting period that is left on the benefit will apply to the child who was moved.

Children’s option

Each child that was covered under this benefit under this policy, can apply for their own funeral insurance policy up to R20,000.00. This must be done no more than three months after their cover has expired at age 21 (if not a full time student) or age 26 (if a full time student) or when they are no longer a child in terms of the general law. The new policy will not have any waiting period. The policy start date for this insured person will stay the same as their policy start date on this policy
Note: This insured person will enjoy cover on the new policy from their policy start date on this policy. If more insured persons are added to the new policy, their cover will have a waiting period of six months for death because of natural causes.

Insured person(s)

Under this benefit, cover is available for the own parent(s), stepparent(s) and foster parent(s) of the main insured person as well as their parents-in-law. The policy schedule shows the names of the insured parent(s) under this benefit.

Insured amount

We will pay the insured amount on the death of each parent covered under this benefit. The policy schedule shows the insured amount of the parents.
The insured amount and premium of this benefit will increase yearly on the policy anniversary at the same rate that the insured amount and premium of the basic policy increase.

Waiting period

Please refer to the section called waiting period.

Limitations

  • The parent must be younger than 80 when the policy starts.
  • The insured amount may not be more than the insured amount of the main insured person.
  • The maximum insured amount for each parent on this policy is R30,000.00.
  • If we find that an insured parent is too old to be on the policy, the cover for this person will be cancelled and all premiums that were paid for this person will be paid back to the policyholder without any interest.
  • Cover is available for up to four people under this benefit. Any additional parents can be covered under the extended family benefit.
  • If we find that a parent under this benefit is not a legal parent, that parent will be moved to the extended family benefit (if possible), if the main insured person has insurable interest in this person. The premium for this parent will be worked out again using the rates of the extended family benefit. If there is a shortfall in premiums payable for this cover (extended family benefit), this will be placed as an interest free premium debt on the policy and taken off from the amount paid out for the first claim or cashback payment made on the policy. If the parent cannot be moved to the extended family benefit, like when six people are already covered under this benefit or if we find that the main insured person does not have insurable interest in this person, the cover will be cancelled for this person and all premiums that have been paid for this person will be paid back to the policyholder without any interest.
  • The insured amount for all parents under this benefit must be the same.
  • If a parent under this benefit dies, they cannot be replaced with another parent, whether the claim was paid or not.

Removing an insured parent

An insured parent can be removed from the policy after the start date of the policy or benefit. If a parent is removed from the policy, their cover will be cancelled and we will keep all the premiums that have been paid for this parent’s cover so far. The total premium amount on the policy will then decrease by the amount of the premium that was paid for the removed parent’s cover.
The same parent may within three months of the date of removal, be added back to the policy at the request of the policyholder. No waiting period will be applicable except the left over waiting period of the original waiting period, if any. The start date of the parent will also stay the same as before the removal. All the premiums that were not paid will have to be paid before the parent can be added back to the policy. If these premiums cannot be paid, we may put the total amount owing onto the policy as an interest free premium debt. This can only be done for a maximum of six full unpaid premiums. If more than six full unpaid premiums are owing, or if there was already premium debt on the policy before the parent has to be added back, the parent will only be added back on the policy when the unpaid premiums have been paid. The total premium payable will increase with the premium amount of the added parent.
If the same parent is added again after the above-mentioned three months, a new premium will be worked out based on the age of the parent at the time of the addition. The total premium payable will increase with the premium amount of the added parent. A new six-month waiting period will apply. Please refer to the section called waiting period.

Adding a new parent

A new parent can be added to this benefit after the start date of the benefit, if the policy is in place and paid to date and if the maximum number of parents has not yet been reached. A parent who died under this benefit cannot be substituted by another one. The total premium payable will increase with the premium amount of the added parent.
A new six-month waiting period will apply. Please refer to the section called waiting period.

Insured person(s)

The following members of the family of the main insured person (in alphabetical order) can be covered on this policy under this benefit:

  • Additional spouse, who must be the life partner of the main insured person in marriage or customary union recognised by the laws of South Africa; OR in a union recognised as a marriage in line with the principles of any religion; OR in a same-sex or heterosexual union that is planned to be permanent and not yet covered under the spouse benefit
  • Additional parents who cannot be covered under the parent benefit because the maximum number of parents are already covered under the parent benefit
  • Adult child
  • Aunt (the sister of the parent of the main insured person)
  • Brother
  • Brother-in-law (the husband of the sister or brother of the spouse of the main insured person)
  • Children of an additional spouse
  • Cousin (the child of the uncle or aunt of the main insured person)
  • Daughter-in-law (the wife of the child of the main insured person)
  • Foster-child
  • Grandchild (the child of the child of the main insured person)
  • Grandparent (the parent of the parent of the main insured person)
  • Nephew (the son of the brother, sister, brother-in-law or sister-in-law of the main insured person)
  • Niece (the daughter of the brother, sister, brother-in-law or sister-in-law of the main insured person)
  • Sister
  • Sister-in-law (the wife of the brother of the main insured person or sister of their spouse )
  • Son-in-law (the husband of the child of the main insured person)
  • Uncle (the brother of the parent of the main insured person)

The policy schedule shows the names of the insured extended family member(s) under this benefit.

Insured amount

We will pay the insured amount on the death of each extended family member covered under this benefit. The policy schedule shows the insured amount for the extended family member(s).
The insured amount and premium of this benefit will increase yearly on the policy anniversary at the same rate that the insured amount and premium of the basic policy increase.
If the policyholder, premium payer and main insured person are the same and dies before 120 premiums have been paid and before the policy is 120 months old, the people insured under the extended family benefit will no longer be covered. For more details, see the section called breadwinner benefit.

Waiting period

Please refer to the section called waiting period.

Limitations

  • The extended family member must be younger than 75 when the policy starts.
  • The insured amount may not be more than the insured amount of the main insured person.
  • The maximum insured amount for each extended family member on this policy is R30,000.00.
  • If we find that the extended family member is too old to be on the policy, the cover for this person will be cancelled and all premiums that were paid for that extended family member will be paid back to the policyholder without any interest.
  • If we find that the main insured person does not have any insurable interest in an extended family member under this benefit the cover for that person will be cancelled and all premiums that were paid for this extended family member will be paid back to policyholder without any interest.
  • Cover is available for up to six persons under this benefit.
  • The insured amount for all extended family members under this benefit must be the same.
  • If an extended family member dies, they cannot be replaced on the policy by another extended family member, whether the claim was paid or not.
  • Section 55 of the Long-term Insurance Act No. 52 of 1998 (as changed from time to time by the government), controls the maximum insured amount that can be paid out when a child under the age of 14 years dies. The maximum insured amount under this policy and any other policy, for children under the age of 14 years may not be more than the amounts listed below:
    • Children under the age of 6 years: R20,000.00
    • Children aged 6 years to 13 years: R50,000.00

If this policy covers a child younger than 14 years under this benefit for more than these amounts, and that child dies, we will only pay the above-mentioned amounts and will not pay back the extra premiums paid for the higher cover.

Removing an insured extended family member

An insured extended family member can be removed from the policy after the start date of the policy or benefit. If an extended family member is removed from the policy, their cover will be cancelled and we will keep all the premiums that were paid for this extended family member’s cover so far. The total premium amount on the policy will then decrease by the amount of the premium that was paid for the removed extended family member’s cover.
The same extended family member may within three months of the date of removal, be added back to the policy at the request of the main insured person. No waiting period will be applicable except the left over waiting period of the original waiting period, if any. The start date of the extended family member will also stay the same as before the removal. All the premiums that were not paid will have to be paid before the extended family member can be added back to the policy. If these premiums cannot be paid, we may put the total amount owing onto the policy as an interest free premium debt. This can only be done for a maximum of six full unpaid premiums. If more than six full unpaid premiums are owing, or if there was already premium debt on the policy before the insured person has to be added, the insured person will only be added back on the policy when the unpaid premiums have been paid. The total premium payable will increase with the premium amount of the added extended family member.
If the same extended family member is added again after the above-mentioned three months, a new premium will be calculated based on the age of the extended family member at the time of the addition. The total premium payable will increase with the premium amount of the added extended family member. A new waiting period will apply. Please refer to the section called waiting period.

Adding a new insured extended family member

A new extended family member can be added to this benefit after the start date of the benefit, if the policy is in place and paid to date and if the maximum number of extended family members has not yet been reached. The total premium payable will increase with the premium amount of the added extended family member. A new waiting period will apply. Please refer to the section called waiting period.

Insured person(s)

Under this benefit, cover is available for the main insured person or their spouse or both. The policy schedule shows the names of the insured person(s) under this benefit.

Insured amount

We will pay the insured amount on the death of an insured person covered under this benefit. The policy schedule shows the insured amount for the insured person(s). The insured amount will be paid in six equal monthly instalments, starting from the first of the month following the date on which the claim was accepted.
The insured amount and premium of this benefit will increase yearly on the policy anniversary at the same rate that the insured amount and premium of the basic policy increase.

Waiting period

Please refer to the section called waiting period.

Limitations

  • The insured person(s) must be younger than 65 when the policy starts.
  • The insured amount may not be more than the basic insured amount.
  • When this policy starts, the maximum insured amount for each insured person is R30,000.00.
  • If we find that the insured person is above the age of 65, the cover will be cancelled and all premiums that were paid for this person under this benefit will be paid back to the policyholder without any interest.

Removing an insured person

An insured person can be removed from the policy after the start date of the benefit, but they cannot be added again at a later stage. If the insured person is removed from the policy, the cover will be cancelled and we will keep all the premiums that were paid for this person’s cover so far. The total premium amount on the policy will then decrease by the amount of the premium that was paid for the removed person’s cover.

Adding a new insured person

A new insured person can be added to this benefit after the start date of the policy, if the policy is in place and paid to date. The total premium payable will increase with the premium amount of the added insured person. A new waiting period will apply. Please refer to the section called waiting period.