According to statistics from a Bureau of Market Research report conducted in conjunction with Metropolitan, around 75% of South African households hold a funeral policy. This high penetration pales in comparison to other non-funeral insurance products, such as life insurance, where only 25% of households have at least one family member contributing to a life insurance policy.
The 2024 Finscope Consumer Survey, released in October 2025, shows that a high number of South Africans with funeral cover hold more than one policy, while a significant number view funeral cover as a savings instrument because the money paid out doesn’t have to all go to funeral expenses. This behaviour is not accidental, as many people take out two, three, sometimes even four funeral policies across different insurers, with the intention of leaving behind a larger payout for their families.
Limitations of Stacking Funeral Policies
Despite how well-intentioned this action is, when you step back, there are limitations and a better way of doing things. There are a few details that some consumers miss when it comes to approaching funeral cover in this matter. For instance, each funeral policy comes with its own premium, as well as its own set of fees. Over time, paying for multiple policies can add up to a significant monthly expense. Over 10 or 20 years, that is money that could run into a few thousands of rands.
Details Consumers Need to Be Aware Of
Despite funeral policies having a cap of around R100,000 per insurer, there is nothing stopping someone from taking out policies with multiple providers. The result is that people are able to “stack” policies in a way that feels similar to saving. However, the payout remains capped per policy and designed for short-term costs. Funeral cover is built to handle the immediate needs around death, not the ongoing financial needs of a household.
According to the South African Government website, financial planning is key to securing one’s financial freedom. It is essential to consider other options, such as life insurance, to ensure that one’s family is well taken care of in the event of their passing. The Investopedia website provides more information on the different types of life insurance policies available.
Here are some things to consider when evaluating funeral policies:
- Check the policy’s premium and fees
- Consider the payout cap per policy
- Evaluate the policy’s suitability for short-term costs
- Look into other options, such as life insurance, for long-term financial security
