Don’t Pay Too Much for Your Funeral Plan

In South Africa, many people have several funeral policies. Maybe you think you have just enough insurance. But make sure you don’t pay too much for your funeral cover.

At first glance, this might seem quite an intelligent thing to do, but it means over-insuring, over-spending, and not receiving all the benefits you deserve. At the end of the day clients can overpay by about 60%, which is a huge chunk of salary wasted.

Research shows that most people spend about 8% of their salary on various insurance policies. They have formal insurance and belong to informal burial societies.

Don’t Pay Too Much – How can you save on Funeral Cover?

  • Only cover the beneficiaries you feel are necessary. You should rather use the money you save on the extra contribution or two to pay off debt.
  • If you cannot pay your monthly premium, after two missed contributions the insurance company will cancel your policy, with no cash refund. So you waste more money.
  • Don’t take out more policies than you can afford.
  • If you consolidate multiple funeral policies into one, with maximum cover, the admin fees will be less than with several policies, and you will probably be receiving the same benefits.
  • Take out your funeral insurance policy with a reputable company. You need them to pay out how and when they promise, with no delaying tactics.
  • Understand the content of your policy, the terms and conditions, any exclusions, waiting periodsDon't Pay Too Much for Your Funeral Plan, etc. Read the small print. Know what you are getting.


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  • Some companies have cheaper premiums where the cover stops at age 65. So that when the insured dies after this age and the family wants to claim, what a shock they get to realise the cover has expired. All the money paid in monthly goes to waste.
  • Multiple policies often mean that the total cover exceeds your income. You might also be paying more than you will eventually get out.
  • Often with multiple policies, you find that some of them get lost in the system as beneficiaries are unaware of their existence. So you’re wasting more money in paid-in premiums.

If you read the small print on the policy document, it will sometimes state that they will pay out less cover if you have other funeral insurance as well. In some cases, they will only pay out one. Again, read the small print.

Don’t Pay Too Much – Ignorance Isn’t Bliss

In rural South Africa, many individuals have no education. They don’t have any idea of the content or terms and conditions of the funeral cover they have purchased.  They are often paying for things they don’t need, and yet the policy omits necessary items.

Most government employees in South Africa have up to seven different funeral plans that all provide some death cover. At the same time, it’s shocking to realise that these same public servants own 50% of the personal loans in the country. As said earlier, these clients are overpaying by about 60% because they have not understood the benefits or cover they are buying.


Research tells us that some 80% of South Africans have at least one funeral cover policy – most have more than one! It’s always helpful getting sound financial advice from a financial expert.  He or she will tell you how you can consolidate into one policy with maximum cover, choose your beneficiaries carefully, and see that you don’t take benefits you don’t need. This way you will not pay too much for your funeral cover.

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All info was correct at time of publishing