How much funeral cover do I need?
How much funeral cover do I need?
Enough to pay for the kind of funeral your family would want, without leaving a shortfall. Add up the likely costs, such as the service, catering, transport and a coffin or casket, plus any cultural or religious requirements, then insure for a realistic total. Many families choose a cover amount that comfortably covers these costs for each person on the policy.
Key takeaways
- Base the cover amount on the real cost of the funeral you would want.
- Include the service, catering, transport and the coffin or casket.
- Allow for cultural or religious requirements that add to the cost.
- Insure each person on the policy for a realistic amount.
- A shortfall means the family has to find the difference at a hard time.
Start with the real cost of a funeral
The right cover amount comes from the actual cost of the funeral you have in mind, not a round guess. Funerals in South Africa vary widely in price, so think through what your family would want and add up the parts:
- The service and venue.
- Catering for mourners.
- Transport, including a hearse and family cars.
- The coffin or casket, and burial or cremation costs.
Allow for cultural and family expectations
Many South African funerals carry cultural, religious or community expectations that add to the cost, from the size of the gathering to specific rites and catering over several days. Being honest about those expectations when you set your cover amount avoids a shortfall. It is better to insure for a realistic figure than to discover the cover falls short when the family can least deal with it.
Cover each person appropriately
On a family plan, different members can be insured for different amounts, so you can match the cover to who it is for. Make sure the amount for each person, including any parents you have added, reflects the funeral they would have. Reviewing this every few years keeps the cover in step with rising costs.
Funeral cover is not income replacement
Keep funeral cover in perspective: it pays for the funeral, not the years of lost income and the debts a family faces afterwards. Those are the job of life insurance, and many families hold both. See life insurance versus funeral cover for how they fit together, then compare quotes. This is general guidance, not financial advice.