Choosing the right funeral cover for your family's dignity

In many South African communities, a funeral is more than a private family matter. It is a cultural commitment that brings neighbours, relatives, and friends together to honour the life of someone who has passed away, and to give them a dignified send-off. While the rituals carry deep meaning, the financial reality is heavy. With families paying for the casket, burial plot, and headstone, as well as catering for mourners and, in some cases, repatriating the body to the person’s place of birth, South Africa is ranked among the most expensive countries in the world to hold a funeral.

From the moment someone becomes late, the family home is filled with visitors. Out of respect, visitors are offered tea or a meal, depending on the time of day. This generosity, while central to many cultures, can quickly add up. It is why many families look to funeral policies as a way to protect not just the dignity of their loved ones, but also their own financial dignity.

More than 15 million South Africans have funeral policies, with many holding more than one. Often, this is to cover multiple family members, and to help ensure that a payout is enough to cover the actual cost of a funeral, which can include everything from money for airtime to manage affairs, paying for family travel or purchasing ceremonial livestock; sometimes it is because they also belong to burial societies with family or friends, have workplace benefit schemes, or have store accounts or loans that automatically add cover for funerals, sometimes without them being aware of it. But multiple policies do not always mean better cover. Duplication can result in higher monthly premiums without delivering extra value.

Instead, families look carefully at whether a policy matches their needs. Ask yourself: will this policy cover everyone? Will it pay out quickly? Can I update my beneficiaries or cover easily? These are the things that will matter when the time comes, and as your financial situation or relationships change.

Features to consider include:

• Number of people who can be covered: some providers, like Finchoice, allow you to cover up to 19 extended family members on the same policy.
• Value of the cover: some policies provide up to R100,000 per person.
• Payout timeline: some providers promise 24-48 hours, but this depends on documents like the death certificate being in order. To help ensure a speedy payout, families should know where to find the policy documents.
• Terms and conditions: is a medical exam needed before cover is provided, and is there a waiting period before you can claim?
• Ability to track and change policies as and when needed, either digitally or through a responsive customer support agent.

Consumers should also check whether a funeral cover provider is an authorised financial services provider with an FSP number and has appropriate financial back-up (underwriting). In some communities, people rely on funeral parlours and other informal providers. Sadly, when it is time to claim, these operators may not be able to pay out at all.

In line with Wills Month and the broader theme of Heritage Month, families see funeral planning as part of the legacy they leave behind. Heritage is not just about where we come from. It is also about what we put in place for the next generation. By preparing financially, we lighten the burden for those who remain. Funeral cover, when chosen wisely, does more than meet cultural obligations. It can also safeguard financial stability long after the ceremonies are over.

* Seyuba is the head of people at Finchoice. 

PERSONAL FINANCE