Many young South Africans are focused not just on being successful, but on enjoying life, often with no dependents to support.
However, in the South African context, there is a high probability that many young professionals who are starting out in their careers are also the breadwinners in their homes and carry the burden of financial responsibility as well.
Elaine Markus, Head of Personal Lines Insurance at Standard Bank Insurance Brokers (SBIB), says it is not uncommon to find young people caring financially for parents approaching retirement age, or younger siblings needing an education, and grandparents with critical ailments.
“Concerning is the likelihood of a younger person, who is the breadwinner, having large savings to address any sudden financial emergency, such as the passing of a family member, is very low,” says Markus.
Traditional funerals often involving elaborate ceremonies, have long been the norm for many South African families. However, the cost-of-living crisis has had a profound impact on how people approach and perceive funeral associated expenses..
While funeral planning may not always been a priority in family financial planning conversations, unexpected tragic life events involving death have highlighted the need for funeral cover.
“Families are becoming proactive in funeral planning as part of their risk management mechanisms, talking openly about the potential death and funerals of loved ones, particularly the death of a breadwinner,” adds Markus.
There’s been the common perception that only older people invest in funeral policies however, SBIB says they have started seeing a shift with data indicating a significant increase in new policies taken up by young people.
The broker business says that in 2023, 20% of new Flexible Funeral Plan policies were taken up by people aged between 21 and 30, compared to 2020 and 2021, where only 12% of its new client base contained this demographic. Furthermore, the data shows that at least a quarter of all its Flexible Funeral Plan policies are taken up by people between the ages 26 and 35.
“In the South African context – where young people often support parents, cousins, aunts and uncles – it makes sense that more young people would be investing in funeral cover for them. That is why it was important for Standard Bank to offer a
funeral plan that considers this reality,” says Markus.
Standard Bank’s Flexible Funeral Policy enables its clients to cover as many family members as they wish on one single policy. The policy offers R100 000 maximum cover for the main member, their spouse, parents and extended family members.
“With the ever-escalating cost of living and South Africans grappling with financial challenges, our Flexible Funeral Policy offers additional benefits that can bring some financial reprieve to its main members,” says Markus.
The Flexible Funeral Policy offers a cashback benefit that pays back 10% of all paid premiums every five years from the time of selecting the optional benefit.
The policy also supports clients in times without money for insurance with the Cover Extender feature that temporarily reduces the policy benefits in proportion to the premium payments missed over the preceding six months before a claims event, restoring them once outstanding contributions have been paid and ensuring people can retain their policies while catching up on missed premiums.
“At SBIB, we are passionate about driving Africa’s growth and we understand the importance of helping clients remain protected, especially in tough times,” concludes Markus.
Disclaimer: Standard Bank Insurance Brokers (Pty) Ltd (Reg. No. 1978/002640/07) is an authorised financial services provider (FSP 224) and part of the Standard Bank Group. Product underwritten by Liberty Group Limited a licensed insurer. Terms and conditions, risks and limitations apply.
My father took out a similar funeral plan through Standard Bank. He passed in December last year . After multiple attempts over the last 9 months since his passing, we have not been able to get any idea of what benefits the funeral plan provided for let alone receive those benefits. We realised the plan existed when we received a message from the Insurer saying they would be canceling the plan because he was not keeping up with payments. A difficult thing to do when the member has passed and the bank closes the bank account. This is standard procedure when one passes. We have no one from the bank talking to us. Not sure what we can do now.