As South Africans face growing financial pressure from the rising cost of living, many are discovering that their funeral policies may no longer be enough to cover modern-day funeral expenses.
Elaine Markus, head of personal lines insurance at Standard Bank Insurance Brokers, said it frequently occurs that families only realise their funeral policies fall short when it is too late, usually when a loved one passes away.
Without enough cover, she said, they would be forced to dip into savings, take out loans, or rely on burial societies and stokvels, which can create further financial stress.
“The 2024 Standard Bank Flexible Funeral Plan data shows that 10% of policyholders have coverage below R15 000, an amount unlikely to cover even basic funeral expenses.”
She said July is a time when South Africans are encouraged to reflect on their financial habits and plan ahead, highlighting that people often overlook underinsurance. She said this is when policy does not match the real costs.
“Meanwhile, 28% hold policies between R15 000 and R50 000, enough for a basic funeral but insufficient for extended ceremonies. In contrast, 62% have coverage exceeding R50 000, ensuring they can manage unexpected expenses, provide a dignified funeral ceremony, and
honour cultural traditions.”
Funeral costs in South Africa vary widely. Standard Bank Insurance Brokers found that even basic services can cost between R15 000 and R50 000, while more elaborate ceremonies may exceed R120 000.
In cities, a burial plot can cost over R3 000, with some areas charging up to R15 000. Coffins range from R800 to R50 000, and added services such as hearse rentals, catering, flowers, and printed programmes can quickly raise the final cost.
Post-burial expenses like tombstones, which can cost anything from R8 000 to R90 000, are often overlooked until it’s too late.
“The question isn’t whether one can afford a funeral policy; it’s whether one can afford not to have funeral cover.”
“Funeral cover serves as a financial safeguard, ensuring that unexpected expenses don’t derail your long-term savings goals.”
To avoid being caught unprepared, Markus recommends revisiting funeral policies every year to ensure they still offer enough cover.
With prices always on the rise, making small changes today can prevent large financial shocks tomorrow.
