Metropolitan has put a bet on flexible insurance to tap into a growing segment of consumers whose incomes do not fit the traditional monthly insurance model.
The insurer recently introduced a No-Lapse Funeral Growth plan that allows customers to start cover with R200 and make further R200 payments when they have the money, rather than committing to a fixed monthly premium.
The product is designed around the idea that more people are losing their jobs, forcing them to rethink their monthly budgets as they attempt to stretch whatever they have among groceries, electricity and transport, often leaving behind financial protection.
READ: Insurance firm sets new benchmark with continent-first cloud migration
12 months to accumulate R1 500
Mapalo Makhu, personal finance educator, explained that customers have 12 months to accumulate R1 500 by either paying the amount upfront or building it through smaller payments.
Securing the threshold within the first year would mean that the cover is secured and would not lapse if the customer later becomes unemployed or can no longer afford to continue paying.
Spreading the word also helps you earn additional cover.
“How it works is that once you make the first payment, you get a referral code. You then send it to someone just to register and you get rewarded towards your R1 500, just a small percentage.
“It is like the more you spread the message, the more rewarded you get. The person you refer also gets their referral code they can use. So, it is more about spreading the message compared to anything else,” explained Makhu.
Model developed for salary shocks
This comes as South Africa’s unemployment rate increased to 33.6% in the second quarter of 2026, up from 32.7% in the first quarter.
READ: Momentum’s top three execs paid R110m as firm delivers double-digit earnings growth
Makhu said the changing nature of household incomes meant that consumers needed to understand whether their financial products could withstand periods of financial pressure.
She said the model was more relevant to people earning income through informal businesses, seasonal work, temporary employment, freelancing and other forms of irregular work where people are likely to struggle with products built around predictable monthly cash flow.
“Of course, flexibility must always come with transparency. Customers should understand who is covered, how the cover amount is calculated, the minimum payments, the 12-month threshold, applicable waiting periods, what happens if the threshold is not reached, and the full policy terms.
“A product is only empowering when people understand both its benefits and its boundaries,” said Makhu.
- Metropolitan introduced a No-Lapse Funeral Growth plan allowing customers to start cover with R200 and make additional R200 payments when able, rather than a fixed monthly premium.
- Customers have 12 months to accumulate R1,500 by paying upfront or through smaller payments to secure the cover and prevent lapse in case of unemployment.
- Policyholders receive a referral code to earn additional cover by spreading the word, earning rewards toward their R1,500 threshold when others register.
- The insurance model targets consumers with irregular incomes, such as those in informal businesses, seasonal work, temporary employment, and freelancing.
- South Africa's unemployment rate rose to 33.6% in Q2 2026, highlighting the need for flexible insurance products designed for income unpredictability.
