Watch: How many funeral policies do you really need?

Many South Africans sign up for more than one funeral insurance policy but have too little financial protection for other threats to their own or their family’s financial future.

It is good to protect yourself against the cost of a funeral, but premiums spent on multiple policies could possibly be put to better use. Especially if the death of a breadwinner will leave your family without an income for the long term.

Find out more about how to use funeral and life insurance wisely by watching the video below or watching on YouTube.

[Full transcript]

Funeral cover can be a lifesaver when someone in your family passes away.
It helps you deal with the high, unexpected costs of a funeral.

But here’s a question — how much cover do you actually need?
And do you really need more than one funeral policy?

Let’s break it down.

Funeral cover amounts are limited

Funeral cover is designed to pay for the funeral only — not everything that comes after.

That’s why there’s a limit on how much you can be covered for.
In 2018, the maximum was R100 000, and some insurers have increased this slightly each year for inflation.

On each policy, the total payout when someone dies is still capped at that limit or that limit adjusted for inflation.

You may need cover for ongoing needs

Losing someone often means more than just funeral costs.

If the person who passes away was a breadwinner or primary caregiver, their loss can create a long-term financial gap.

That’s where life cover comes in.

Funeral cover helps with immediate costs, but life insurance protects your family’s future income and stability.

Funeral cover isn’t always cheap

Funeral policy premiums may look affordable — but you could get better value for your money than paying for multiple policies.

Here’s why: Funeral policies often let you cover many relatives without much health information.

Because insurers take on more risk — they could have to pay out sooner — they charge higher premiums.

So, while it’s great for quick protection, it’s best to take out only as much cover as you really need, and to do it cost-effectively.

If you’re young and healthy, consider taking life cover instead of another funeral policy, or a life policy that includes a funeral benefit.

It could be cheaper over time — and take care of both funeral and long-term needs.

Check how many policies you already have

Before signing up for a new policy, take a moment to check how many policies you’re already paying for.

You might already have funeral cover through:

• Your employer or retirement fund
• Your stokvel
• A policy you bought directly
• Or even as an add-on to your life cover

If you are thinking of switching policies for extra perks — like cashback, airtime, groceries or loyalty rewards — remember: those extras are built into the cost.

Before you change anything, check what you already have, what you really need, and what you’re actually paying for.

And remember — the older you are when you take out new cover, the more expensive your premiums will be.

Funeral cover can give you peace of mind — but having too many policies doesn’t always mean better protection.

Think about your family’s real needs, what you can afford, and what you already have.