Two major insurance groups are responsible for most funeral policy deductions taken directly from SASSA pension and disability grants.
New figures show that Clientèle Life and Sanlam, including their subsidiaries, collect nearly 87% of all such premiums deducted from beneficiaries every month.
This has drawn attention because these deductions come from grants meant to support some of South Africa’s most vulnerable citizens.
Funeral Premium Deductions From SASSA Grants
According to the latest available figures, more than R165 million in funeral policy premiums is deducted every month from about 1.11 million SASSA beneficiaries. Of that amount, R143.33 million goes to companies linked to Clientèle Life and Sanlam.
These deductions are made from old-age pensions and permanent disability grants before the money reaches the beneficiary’s account. Under the law, only one funeral policy premium may be deducted from a grant, and it may not exceed 10% of the total grant amount.
Two Groups Control Most Of The Market
Although a list of 30 life insurers has been provided, the market is heavily concentrated in just two large insurance clusters.
The Clientèle group strengthened its position after acquiring 1Life Insurance in July 2024. It later completed the acquisition of Emerald Life in June 2025, giving it even greater control over funeral policy deductions linked to SASSA grants.
The Sanlam group also plays a major role through brands such as Assupol, Safrican Insurance, and other related companies. Sanlam completed its acquisition of Assupol in October 2024, further expanding its reach in this sector.
Together, these two insurance groups collect 86.83% of all funeral policy premiums deducted from pension and disability grants.
Pensioners Make Up The Largest Share
Most of the deductions are taken from old-age pensioners. The figures show that about 936,243 pensioners have funeral policy deductions on their monthly grants, with total deductions just below R140 million per month.
Among the leading insurers, Emerald Life collects the largest amount from pensioners, followed by Assupol Life and 1Life Insurance.
These companies also dominate deductions from disability grants, where thousands of beneficiaries have monthly premiums taken from their payments.
This shows just how large the funeral policy market has become within the social grant system.
Concerns Over Unauthorised Deductions
The issue has become more controversial because some pensioners previously reported that money was being deducted from their grants without their knowledge or permission. In some cases, deductions ranged from R100 to R280 per month for funeral policies.
When these cases were investigated, affected pensioners were reimbursed. However, the insurance companies involved said they had evidence that the policies had been authorised. Even so, concerns remained about whether all beneficiaries fully understood or properly consented to the deductions.
This has raised broader questions about transparency, informed consent, and the protection of vulnerable grant recipients.
Government Says Safeguards Are In Place
The government says the deduction system is regulated and includes several checks to protect beneficiaries. According to the Minister of Social Development, only registered insurers can participate in the system.
She said beneficiaries must complete biometric verification, which may include facial recognition or fingerprint matching against Department of Home Affairs records. A liveness check is also used to confirm that the person is physically present during the process.
The system also checks whether the premium is affordable and whether it complies with legal limits before any deduction is approved.
Small Table Of Key Figures
| Item | Details |
|---|---|
| Total monthly deductions | Over R165 million |
| Total affected beneficiaries | 1.11 million |
| Share collected by Clientèle and Sanlam groups | 86.83% |
| Amount collected by the two groups | R143.33 million |
| Main grants affected | Old-age and disability grants |
Complaints And Refund Process
Beneficiaries who believe deductions were made without permission can report the matter through SASSA offices, a free SMS service, or directly with the insurer. Each complaint is supposed to trigger an investigation.
If the deduction is found to be irregular, the policy can be cancelled and the money refunded to the beneficiary. The minister also said repeated complaints could lead to action against insurers or agents involved in wrongdoing.
Conclusion
The latest figures show that Clientèle and Sanlam dominate funeral policy deductions from SASSA grants, collecting nearly 87% of all monthly premiums.
While the government says strict controls are in place, past complaints about unauthorised deductions mean the issue remains sensitive. For pensioners and disability grant recipients, clear consent and proper oversight remain essential.
