Sassa bans debited funeral policy payments from recipients’ accounts

The amended Social Assistance Act says a maximum of 10 percent of the grant may be used for funeral covers.

Picture: ‏@OfficialSASSA.

JOHANNESBURG - The South African Social Security Agency (Sassa) says funeral insurance companies will no longer be allowed to deduct policy payments from the accounts of social grant beneficiaries.

Sassa says those who have agreed to have funeral policy deductions directly from their grants may have to make alternative arrangements.

According to Sassa, from November this year funeral insurance companies will no longer be allowed to debit policy payments from child support grants and temporary disability grants.

The amended Social Assistance Act also says a maximum of 10 percent of the grant may be used for funeral covers.

Sassa's Kgomoco Diseko said, "Our beneficiaries who are interested in continuing with funeral policies of that nature should make alternative arrangements. Another category that is affected is temporary grants, people have been taking funeral policies on this grant and it is not helpful because after 12 months you lose all the premiums you have paid."