Funeral cover via cellphones
Using the same methodology as purchasing prepaid cellphone airtime, life assurer Discover Health and Vodacom have piggybacked on existing cellular technology in order to sell funeral cover to the low-income market. "People are already very familiar with purchasing pre-paid airtime for their cellphones and we expect them to find it just as easy and convenient to use the same process to buy funeral cover now," says Shameel Joosub, MD of Vodacom South Africa.
Hylton Kallner, GM of marketing for Discovery, explains that a new marketing model was needed when Discovery Life decided to enter what is a 'very competitive market.'
Sussed market
"Cellphone penetration in SA is amongst the highest in the world, and is especially strong in the LSM 1- 5 bracket at which this product is aimed. So we decided to 'piggyback' on the knowledge and habits of a very technologically sussed market to deliver a product which offers convenient access and value-for-money.
"Vodacom is proud to be part of this innovative service, creating an entirely new concept in funeral cover, while maintaining the familiarity, affordability, flexibility and control, based on its prepaid cellular platform. This service opens up the world of funeral cover to all South Africans via Vodacom's cellular retail channels and cellular recharge infrastructure," adds Joosub.
Kallner says market research showed that there is a large appetite for simplifying the purchase of funeral cover.
"We expect demand for buying cover via cellphone on a pay-as-you-go basis to be high, because it is more accessible, quicker and more convenient to organise than buying cover through traditional channels."
Control
Kallner says that research by Discover shows that people also like the control the pre-pay model gives them. People in remote rural areas are also given equal access, so geography is not a constraint on sound financial planning.
"They also like the user-friendliness of the product, even though it is a totally new concept in funeral plans. Every element of the Discovery Prepaid Funeral Plan starter pack is aimed at simplifying and clearly articulating the concept and how to use it, so it really makes it simple."
People wanting to buy the policy will be able to pick up these starter packs at participating Vodacom retail outlets and Spaza shops - initially only in Gauteng. The product will be available in other provinces from 2007.
