Funeral cover extended family bogus

Took out a funeral cover with Capitec, they say you can add your extended family my daughter is single and I have added her and her children to my policy. She had her 3rd child premature and I added him 2 days after his birth to my policy unfortunately the baby had complications and died when he was only 18 days old. My daughter is not working. I put in a claim and after almost 2 weeks with numerous emails and phone calls, I was informed that I can not claim for my grandson as he was a newborn and was not my direct child so he was not covered. Why on earth do they say put on your extended family if they know they are not paying out.