Funeral cover in Namibia sits at the intersection of compassion and commerce. It has long been regarded as a financial safety net that allows families to bury their loved ones with dignity, but it has recently come under intense national scrutiny following a series of disturbing revelations that expose how far some individuals are willing to go for illegal financial gain.
This is because, in recent weeks, funeral cover scams have dominated headlines, with the latest incident reportedly prompting law enforcement authorities to halt payouts on suspicious claims. When abused, funeral cover exposes the worst of human greed, but when used responsibly, it remains a vital pillar of financial resilience in Namibian society.
One of the most alarming local cases involved as many as 40 individuals allegedly taking out funeral cover policies on a single person. Even more troubling are reports that a suspected murder may have been committed to claim funeral cover benefits from financial service providers.
These developments have sparked a broader debate in Namibia about funeral cover criteria, the limits of such policies, and whether the person being insured must explicitly consent to the arrangement.
Funeral cover remains one of the most widely used insurance products in Namibia. Offered by licensed service providers, it is designed to shield families and extended relatives from the often crippling costs associated with funerals. Depending on the plan, cover can range from as little as N$5 000 to as much as N$100 000, with some policies extending benefits to transport, groceries and other related expenses.
Many providers offer cover for large households, in some cases up to 24 family members, and some plans do not require medical examinations. While these features make funeral cover accessible and culturally relevant, industry experts warn that these may also create opportunities for abuse if safeguards are not robustly enforced.
According to Old Mutual’s retail mass market operations manager, Simeon Shiimi, funeral cover is not an unregulated free-for-all.
Old Mutual, one of Namibia’s major insurers, offers two main funeral products, namely Family Funeral Cover and Extended Family Funeral Cover. Under the family option, a policyholder may insure themselves, their spouse, an unlimited number of children, and up to two nominated children. The maximum entry age for a policy owner and spouse is 80 years, while children are covered up to age 21.
The extended family option allows policyholders to insure non-core family members, including up to four parents, four siblings and eight other family members. The maximum entry age for extended family members is 85 years. Crucially, all insured persons must be related to the policy owner or their spouse and must be permanent residents of Namibia. Cover ceases if an insured person no longer resides in the country.
Shiimi notes that while individuals may apply for multiple policies according to their needs, the total cover available is limited per life insured. “There is a cap on the total benefit that can be paid out on one individual,” he explains. On the question of fraud, Old Mutual confirms that it has systems in place to detect irregularities. “When potential irregularities are identified, they are investigated by our forensic team, and depending on the seriousness, the police may be engaged,” Shiimi stated.
While the recent scandals highlight the dark side of funeral cover, insurers caution against losing sight of why the product exists in the first place.
According to Geoffrey Namaseb, Sales Manager at Standard Insurance Brokers Namibia, funeral cover plays a critical role in a society where many young professionals are, in fact, breadwinners. “Many young Namibians are supporting parents nearing retirement, siblings still in school, and extended family members with healthcare needs,” he said.
With limited savings and rising living costs, the death of a loved one can trigger both emotional devastation and financial collapse. Standard Insurance Brokers’ data shows a growing number of younger Namibians taking out funeral cover, reflecting a shift toward proactive financial planning.
To respond to these realities, the company introduced a Flexible Funeral Policy that allows an unlimited number of family members to be covered under a single policy. Cover ranges from N$5 000 to N$150 000 for extended relatives. A notable feature is that the policy remains active even if a premium is missed, with benefits adjusted proportionally rather than lapsing entirely.
Momentum Metropolitan Namibia’s Sales Manager, Panduleni Ilonga, argues that there should be a deeper conversation about the limitations of funeral cover.
“Funeral cover allows families to bury loved ones with dignity,” Ilonga said. “But once the funeral is over, life continues.”
School fees, rent, loans and daily living expenses do not disappear with burial rites. Ilonga stressed that life insurance is what sustains families after the immediate crisis, particularly in a country where many households depend on a single income.
In a recent Op-Ed, Ilonga described life insurance as an act of love and responsibility, ensuring continuity for children, spouses and extended family members. “It is not about numbers. It is about dignity, stability and the future of the next generation,” he said.
Meanwhile, the recent allegations of fraud and suspected murder surrounding funeral cover mark a chilling turning point for Namibia’s insurance industry. They underscore the need for stricter verification processes, greater regulatory oversight and clearer rules around consent and insurable interest.
At the same time, insurers and policymakers face a delicate task of tightening controls without undermining access to a product that remains essential for so many Namibians.
– Ebrandtz@nepc.com.na
