Funeral Insurance, Cover & Funeral Policy Plans (2024)

There are few things in life as tragic and heartbreaking as an unexpected death in the family. This trauma is only compounded if, while trying to come to terms with their loss, the family has to deal with the cost of arranging a funeral to honour the memory of their loved one as well.

Did you know that South Africa has, on average, some of the highest funeral costs in the world? A funeral can be financially ruinous if you aren’t expecting it, or if your late loved one hasn’t made provision for it. Depending on your family tradition or custom, the costs could pile up into tens of thousands of rands, if you include the undertaker’s fee, buying the burial plot and more. This is a steep cost to bear out of pocket!

A funeral policy helps you cover these costs by giving you a lump sum payout when the named beneficiary of the policy dies. These payouts are typically faster than other types of insurance, like life insurance, which means funding the funeral is the one thing you don’t have to worry about at this time. Depending on the funeral cover policy, payouts can include airtime, flowers, catering and tent hire, among other necessities.

Life insurance is based on an individual’s profile and needs, which comes with complex underwriting requirements, making it comparatively more expensive. Funeral cover doesn’t have this problem. Thus funeral cover is cheaper and easier for you to get compared to life insurance. However, most funeral cover policies will have a waiting period for natural deaths of 6 to 12 months, so if you’d like a funeral cover with no waiting period, you need to specify this need.