I remember sitting across from my aunt one Sunday afternoon. We were sipping rooibos tea when she said something that stopped me mid-sip:
“You know what scares me more than dying? Leaving my kids with the bill for my funeral.”
That stuck with me. It’s one of those conversations you don’t plan to have, but it pops up when someone starts thinking about retirement. And honestly, it’s not a bad point. Funerals are expensive. Depending on where you live, the costs can run anywhere between R20,000 and R50,000 (or more if you want the fancy casket and all the extras). For many families, that’s a serious financial hit at an already emotional time.
So when I came across Liberty’s No-Premium Policy at 65, I thought: Huh, that’s actually interesting. But then my skeptical side kicked in: Is it really as good as it sounds? Or is there a catch?
That’s what I’m going to unpack today—what this policy means, why it matters, and whether it’s truly as beneficial as it appears to be.
What Is the No-Premium Policy at 65?
Here’s the gist: Liberty, a major player in the South African insurance world, offers a perk with its funeral cover plans. Once you hit the age of 65, you stop paying premiums. Yep—zero, nada, zilch. But your funeral cover remains active for the rest of your life.
On paper, that sounds incredible. You basically pay for a number of years, and then you get lifetime cover without the monthly debit orders draining your bank account when you’re living on a fixed pension.
But let’s slow down for a second. This is insurance we’re talking about. There are always conditions, right? And usually a timeline of payments. You can’t just sign up at 64, pay for 12 months, and then expect free cover forever. That would be… well, financially disastrous for the insurer.
From what I could gather, you need to start your policy before a certain age (typically before 65, and often earlier to really benefit), and you must keep your payments up-to-date until you hit the magic number. Miss too many payments and, well, there’s no free lunch.
Still, the basic idea—pay until 65 and then stop—is surprisingly generous in an industry that tends to look for every possible reason to keep charging you.
Why Does This Matter?
If you’ve ever spoken to someone living on a state pension or a small retirement fund, you’ll know how tight things can get. The cost of food goes up, electricity prices jump, and suddenly, that R250 or R300 funeral policy premium feels like a luxury.
Now imagine being 68 or 72, living on a fixed income, and realizing you don’t have to pay for funeral cover anymore. That’s a small relief in a world that can feel financially overwhelming.
It also removes a very real fear many older people have: that they’ll have to cancel their funeral cover because they can’t afford it anymore. And if they cancel, what happens? The years of premiums paid basically vanish into thin air, and their family is left scrambling when the time comes.
So Liberty’s perk isn’t just a marketing gimmick—it solves a legitimate problem. But (and here comes my hesitation), there’s something else to think about…
Is There a Catch?
Okay, so my inner skeptic wasn’t going to let this one slide without some critical questions.
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Do you have to keep the same level of cover?
Probably yes. If you decide you want to upgrade your cover at 67, that free-ride policy may not be so free anymore. -
What about add-ons?
Most funeral policies let you add family members, grocery benefits, airtime vouchers, even repatriation services. But after 65, if you want to make changes, it may come with a cost. -
What happens if you start the policy late in life?
This is the big one. If you only sign up at 59, you’re paying premiums for six years before you hit 65. Still good? Maybe. But if you started at 25, you’ll have been paying for 40 years before the benefit kicks in. That’s a long time.
In short, this perk sounds incredible, but its real value depends on when you start, how long you pay, and what your premiums look like over time.
Why Would Liberty Offer This?
Here’s where it gets interesting. Insurance companies don’t hand out freebies out of kindness. They calculate risk like a chess master planning five moves ahead.
Offering a no-premium benefit after 65 may sound generous, but it’s likely factored into their pricing model. If you start early and pay consistently for decades, Liberty has already recouped its costs (and then some) by the time you hit 65.
In a way, it’s a smart retention strategy. People who know they won’t pay after retirement are less likely to cancel before then. And let’s be honest—how many of us plan to keep a policy for 40 years? Many policies lapse long before that because life happens. So while some customers will benefit massively, others may never see the perk at all.
Would I Recommend It?
Here’s the honest truth: it depends on your life stage and financial situation.
If you’re in your 30s or 40s, signing up now could make sense—especially if Liberty’s premiums are competitive and you’re planning to keep funeral cover no matter what.
If you’re in your late 50s? Well, the math changes. You need to look at how much you’ll pay between now and 65 versus what you’d pay if you picked a different policy without the no-premium feature. Sometimes, a slightly cheaper plan (without the perk) might actually save you money in the long run.
And if you’re already 64 thinking, Oh, I’ll just sign up and stop paying next year—sorry, that’s probably not going to fly.
A Personal Take on Peace of Mind
When my aunt had that conversation with me years ago, she ended up getting funeral cover soon after. I remember her saying, “It’s not for me, it’s for them.” By “them,” she meant her kids.
That’s really what this all comes down to—peace of mind. Knowing your family won’t be passing around a donation box to cover burial costs. Knowing they can focus on grieving and remembering you, not negotiating payment plans with a funeral home.
Liberty’s policy does seem to offer that peace of mind with a little extra comfort: the knowledge that at some point, you stop paying. And when you’re old and tired of debit orders, that’s no small thing.
What About Alternatives?
Now, I can’t ignore the fact that there are other ways to handle funeral costs. Some people choose to self-insure—basically, saving money in a dedicated account. If you start early and are disciplined, this can work. But it also requires trust that you won’t dip into that account when the car breaks down or when your kid needs school fees.
Others invest in life insurance with a built-in funeral benefit, which may be more cost-effective in some cases. Or they join burial societies, which are still popular in many communities because they provide not just financial support but social support during bereavement.
So, while Liberty’s offering is unique, it’s not the only solution out there. And that’s something to consider before you jump in.
Final Thoughts
I like the concept. It feels consumer-friendly in an industry that doesn’t always have that reputation. It acknowledges a real challenge older people face—rising costs and shrinking incomes—and offers a solution that sounds, well, humane.
But as with most things in finance, the devil’s in the details. Read the fine print. Ask the awkward questions:
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What if I skip a premium?
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Can I still cover my spouse?
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What happens if Liberty changes the terms down the line?
If the answers satisfy you, then this perk could be a game-changer. And if not? Well, at least you’ll have avoided a nasty surprise at 65.
Personally, if I were starting fresh today and planned to keep a funeral policy for life, I’d give this serious thought. Because if there’s one thing my aunt taught me that day, it’s this: funeral planning isn’t about death, it’s about dignity for the people you love.
Continue reading – Old Mutual’s Premium Protection: Ensuring Life Cover Continues After Disability