Pay-when-you-can insurance

The Shoprite group and Old Mutual last week launched an innovative top-up insurance product. It is called pay-when-you-can and is available through all Shoprite supermarkets across South Africa.

The Shoprite group and Old Mutual last week launched an innovative top-up insurance product. It is called pay-when-you-can and is available through all Shoprite supermarkets across South Africa.

You simply buy the policy off the supermarket shelf in the same way as you would buy cellphone starter packs, and can then top up the insurance at an affordable price in the same way you would do with airtime.

Brian Weyers, the marketing director of the Shoprite group, said that the insurance policy provides accident and funeral cover for the whole family at an affordable rate.

Weyers said: "For only R9,95, consumers will be able to get R5000 family accident cover for 60 days when they register in any Shoprite store in the country.

"Once registered, the consumer will be able to top up the accident cover for only R6,95 for an additional R5000 for another 60 days," said Weyers.

He said after registration, the buyer will also be able to buy family funeral cover at Shoprite, which includes cover for death related to natural causes, but which is subject to terms and conditions.

Weyers said the consumer can buy units of family funeral cover for one year.

"This means that unlike most insurance products, the funeral cover does not expire if not paid every month. The purchaser can top-up cover at any time in our stores. Cover for up to R20000 is available," he said

Weyers said Shoprite recognised that consumers wanted convenience and affordability when buying accident cover, especially with the high incidence of road accidents in South Africa.

"This pioneering insurance product from Old Mutual enables our consumers to buy very affordable life cover at high-risk periods, such as when going on long-distance road trips during busy holiday periods.

"It gives them the assurance that their family will be financially secure in the event of an accident," Weyers said.

Marshall Rapiya, managing director of retail at Old Mutual, said that pay-when-you-can provides consumers with accident cover and family funeral cover with no commitment or monthly fees or the need for a bank account, debit order or salary reduction. All payments can be made in cash conveniently at any Shoprite store when the need arises or as one can afford it."

He said that Shoprite was a natural choice as retail partner to distribute the product.

"Finding ways to provide South Africans with better access to financial services is a key focus for Old Mutual.

"Pay-when-you-can is yet another example of Old Mutual's efforts to provide access to financial products to low-income earners," said Rapiya.

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