Funerals are expensive and happen at the worst time. Funeral cover is how many families prepare.
A policy is only useful if it pays when needed, and it only pays if you chose well and kept paying.
What are the types of funeral cover?
| Type | How it works |
|---|---|
| Individual | Covers one person |
| Family | Covers the policyholder, spouse and children, sometimes extended family |
| Group or employer | Provided through work. Check what happens if you leave |
| Burial society or stokvel | Members contribute, and the group pays funeral costs. See stokvels |
What are the 8 things to check before buying funeral cover?
| Check | Why |
|---|---|
| Payout amount | Compare with real funeral costs in your area |
| Premium | Can you pay it for years? |
| Waiting period | Many policies pay only after a waiting period for natural causes |
| Who is covered | Spouse, children, parents, extended family |
| Exclusions | What is not covered |
| Premium increases | Do premiums rise with age or time? |
| Payout speed | How fast does the claim pay? |
| The insurer | Is it licensed? |
How do waiting periods work?
Many funeral policies have a waiting period before they pay for death from natural causes. Accidental death is usually covered sooner.
Under the Financial Sector Conduct Authority’s rules, a funeral policy may not impose a waiting period longer than the shorter of one quarter of the policy term or six months for natural-cause benefits. Six months is the standard period.
If you replace a policy, ask in writing whether a new waiting period applies. Do not cancel the old cover until the new one is confirmed.
How do you avoid over-insuring?
Check what you already have: employer cover, a bank policy, a burial society. Avoid paying for several policies that pay for the same funeral.
Premiums you cannot sustain lead to lapsed cover. If you stop paying, the policy lapses and your family loses cover. Choose a premium you can keep up even in a tight month.
How do you use an insurer safely?
- Check that the provider is licensed by the Financial Sector Conduct Authority (FSCA).
- Read the policy summary and the full terms.
- Be careful with unsolicited calls and “free” cover offers that ask for banking details. See online loan scams.
- Keep proof of payments.
What should your family know?
Tell your beneficiary where the policy documents are, which insurer it is and how to claim. Keep a copy with your will. See how to write a will.
How does funeral cover relate to loans?
Credit life insurance on a loan settles the loan, not the funeral. See credit life insurance.
Do not borrow to pay a funeral if cover exists. Check your policies first, and read emergency loans if you have no cover.
Where can you complain about funeral cover?
First to the insurer. If you are not satisfied, use the National Financial Ombud, which handles complaints about insurers.
What does a funeral cost, and how does funeral cover compare?
Costs vary widely by area and tradition, so treat these figures as an illustration rather than a price list. Here is a hypothetical funeral.
| Item | Illustrative cost |
|---|---|
| Coffin and undertaker services | R9,000 |
| Transport | R3,000 |
| Venue, tent and chairs | R2,500 |
| Catering | R6,000 |
| Flowers, programmes and other costs | R2,000 |
| Total | R22,500 |
If your funeral cover pays R15,000, the family faces a gap of R7,500. That is the number to think about when you choose a payout. Ask relatives what a funeral in your community costs now, rather than guessing, and revisit the figure every few years.
What does the premium add up to over the years?
A policy is a long commitment. Here is a hypothetical family policy at R150 a month.
| Years of premiums | Total paid |
|---|---|
| 5 | R9,000 |
| 10 | R18,000 |
| 20 | R36,000 |
Over ten years, the premiums approach the payout on a R20,000 policy. That does not make cover a poor idea, because the family is protected from the first month and may claim long before the premiums add up.
It does mean that you should shop around, compare payouts and premiums, and avoid paying for cover you do not need. Choose a premium you can keep paying in a tight month.
What happens when someone dies, and what do you need to claim?
In a difficult time, a checklist helps the family. The steps usually run like this:
- Get the death certificate and the burial order from Home Affairs and the undertaker.
- Call the insurer as soon as you can, and ask what it needs.
- Gather the documents: the policy number, the deceased’s ID, the claimant’s ID, the death certificate and the claim form.
- Submit the claim and keep a reference number.
- Follow up if the payout is slow, and ask for the reason in writing.
Keep a copy of the policy where a family member can find it. Many claims are delayed simply because nobody knows the insurer’s name. Check your policy for any deadline by which a claim must be reported.
How do you spot a dodgy funeral cover seller?
Funeral cover is a favourite of cold callers and, sometimes, scammers. Slow down if:
- You are called out of the blue and asked to “confirm” your banking details.
- The seller will not give you the insurer’s name or a written policy summary.
- You are told the offer expires today.
- The cover is “free” but a debit order is set up in the background.
Check that the insurer and the seller are authorised on the FSCA website, and read the policy before you agree. A genuine seller will give you time. See online loan scams for the pressure tactics to watch for.
How often should you review your funeral cover?
A policy bought years ago can quietly stop meeting your needs. Review your funeral cover when your family changes, when a premium rises sharply and every few years as a routine.
Ask the insurer for a statement showing the payout, the premium, who is covered and whether the policy is in good standing.
Check that the beneficiary is still right, and that the payout is enough for today’s costs. If you decide to change policies, keep the old one until the new one is confirmed in writing, so that you are never uncovered.
Frequently asked questions
Can I have more than one funeral policy?
Yes, but check whether it is worth it. Several policies may pay for the same cost.
What happens if I miss a premium?
The policy can lapse, and your family can lose cover. Contact the insurer early.
Can I change the beneficiary?
Usually yes. Ask the insurer, and tell your family.
Is accidental death covered during the waiting period?
Often yes, but check your policy terms.
How much funeral cover do I need?
Enough to cover the costs your family would face, minus any other cover. Ask what a funeral costs in your community, and review the amount every few years.
Does funeral cover pay immediately?
Usually after any waiting period and once the claim documents are accepted. Ask the insurer how long claims take, and keep your policy details handy.
One free 5-minute form is sent to NCR-registered lenders. Each lender decides for itself and shows you the full cost before you sign.
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