A good funeral policy can prevent grieving families from taking further strain

Daily Maverick

a day ago

The cost of funerals in South Africa is notably higher than in many other countries (about 10% more), due largely to the country's diverse cultural and religious traditions.
Funeral cover is the most popular type of insurance in South Africa. However, more than half the adult population remains without such insurance, leaving many families vulnerable to the high and often unexpected costs of funerals.
'Funerals are more than just ceremonies — they are cultural and personal legacies,' says Deidre Wolmarans, head of digital service at Metropolitan.
The cost of funerals in South Africa is notably higher than in many other countries (about 10% more), due largely to the country's diverse cultural and religious traditions.
Nwabisa Saul, chief executive of Abaveleli Funeral Directors in Komani (formerly Queenstown), Eastern Cape, says that in some rural areas, traditional practices require the slaughter of multiple animals, and meat costs alone can sometimes reach between R27,000 and R30,000.
'On average, a family might need a cow and six sheep to fulfil traditional expectations,' Saul said.
Given these substantial expenses, funeral cover is essential to ease the financial burden on grieving families.
Funeral policies can help to manage costs by covering traditional requirements, offering cashback options and providing broader coverage for multiple family members.
The following points contain important information you should know:
Funeral policies come in various forms, covering either individuals or extended family members, and can be sold directly by insurers, financial advisers, banks, shops or membership organisations.
To make an informed choice, it's crucial to verify that the seller of the policy is licensed by the Financial Sector Conduct Authority.
Know exactly who the insurer is, as many policies are managed by third-party administrators.
You should personally complete the application forms and be sure to carefully read all the fine print.
After acceptance, a policy or summary must be provided — take the time to understand it fully.
Not all funeral policies offer the same level of coverage. 'Many policyholders believe they are covered, only to discover a long list of exemptions in their time of need,' cautions Wolmarans.
Be aware of hidden costs, such as transportation of the deceased if their family home is in a different province or even a different country.
You have a 30-day cooling-off period to cancel the policy and receive a premium refund, provided you have not already claimed on the policy.
Read your policy carefully. Take note of waiting periods and exclusions.
Pay premiums on time and be sure to keep proof of payment.
Update beneficiary details regularly.
Avoid unlicensed operators that may not honour claims.
Submit claims promptly because late claims can be refused. DM
Practical ways to reduce funeral costs
Reduce funeral home time: Many cultures require burial within three days, which can cut storage and service costs.
Consider compromises: Families can decide which traditional elements to adjust, such as replacing animal slaughter with simpler catering options.
Broaden policy coverage: Covering multiple family members spreads costs more evenly.
Respect cultural preferences: Though cremation is cheaper, it is not widely accepted in many communities, and traditional funerals are costly.
This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R35.