With South Africa the most expensive country to die in, experts advise that funeral cover for an average citizen is no longer a necessity but a must for peace of mind.
According to a 2020 Sun Life study, South Africa ranked 21st in the world for the cost of a funeral and fourth if that cost is calculated as a percentage of income.
Sun Life is one of the world’s biggest and oldest insurers and is headquartered in Canada.
Head of people at Finchoice, a financial services outfit, Nelisiwe Seyuba, says from the moment an average South African (read black) dies, their home will be full of 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,” she said.
“It is why many families look to funeral policies as a way to protect their own financial dignity.”
In South Africa, more than 15-million people have a funeral policy. To ensure that there is enough to cover the cost of a funeral, including family travel costs and the required beast to feed the masses, many have more than one cover.
But multiple policies do not always mean better cover, as duplication can result in higher monthly premiums without delivering extra value.
She said the questions one should ask themselves when buying funeral cover are: will this policy cover everyone, will it pay out quickly, and can I update my beneficiaries or cover easily?
“These are the things that will matter when the time comes,” she said, adding that another important factor to consider is a waiting period before a claim can be filed.
“But do not forget to make sure you buy your cover only from an authorised financial services provider which has an appropriate financial backup or underwriting.
“Some communities 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,” said Seyuba.
Seyuba suggested that families view funeral cover as part of a legacy one leaves behind when they die.
“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.”
