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Watch: Busting the myths about funeral cover
More South Africans own funeral insurance than any other financial product.
While it may be the product we own the most of, it does not necessarily mean we understand exactly how these policies work.
We have identified five myths that need busting, so policyholders know how when they are covered and for what.
You can also watch on YouTube.
(Full transcript)
Funeral cover is South Africa’s most popular financial product.
But just because everyone has it… doesn’t mean everyone understands it.
Let’s bust five common myths about funeral cover — and explore what it really does for you and your family.
Myth 1: If you have a funeral policy, the insurer owes you something
Not exactly.
An insurer only pays out if three things are true:
You have a valid policy and your premiums are up to date.
The person insured has passed away.
The death is covered by the policy.
If you stop paying and the policy lapses, it has no value — even if you’ve paid for years.
Myth 2: You’re covered the moment you sign up
Visuals: calendar pages flipping; clock countdown; “Waiting Period” sign
Not true.
Most funeral policies have waiting periods — typically six months for natural deaths.
This prevents people from taking cover only when someone is frail or already seriously ill.
You’re usually covered immediately for accidental death, since accidents can’t be predicted.
Myth 3: Every policy covers the full cost of a funeral
Nope.
Your policy pays a set amount of money, not necessarily the total cost of the funeral you want.
If you plan a big funeral, or need to transport the body home, the payout may not stretch that far.
Some funeral parlours include specific services — like transport, a coffin, or a graveside tent — in their cover.
This gives you less choice, but you know exactly what’s included.
Myth 4: The best policy has the most benefits
Sounds good, right? But more benefits mean higher premiums.
You’ll pay more for extras like:
Cover for many people
Premium holidays
Cashback bonuses
Added benefits like groceries or airtime
So “best” really depends on what you need and what you can afford.
Myth 5: You can insure anyone
Not quite.
Most policies limit who you can cover — usually your immediate or extended family.
Some allow others you have a personal or financial relationship with, like a domestic worker.
But you must have an “insurable interest” — meaning there’s a real connection, financial or familial.
And you must correctly name everyone you’re covering.
Funeral cover can give you peace of mind and a financial safety net when someone dies.
But remember — if your family is blessed with long lives, you may be paying for many years.
So, before you sign up, think carefully about what cover you really need — and what you can save for yourself.
For more information on funeral cover and costs, go to www.smartaboutmoney.co.za/funeral-cover/
Learn how to plan wisely, spend smartly, and protect your future.
