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Many South Africans ask this question when planning for their family’s future. While both policies pay out when someone passes away, they serve very different purposes. Understanding the difference between funeral cover and life insurance helps you make informed financial decisions and can help you avoid leaving your loved ones in financial distress.
In this guide, we explain what each policy covers, why both may be necessary and how to choose the right product for your needs.
Quick definitions
Although life cover and funeral cover both pay a lump sum on the death of the insured, they fulfil different needs. Funeral cover is designed to pay for immediate expenses such as the service, casket, transport and memorial costs. Life cover offers long-term financial security. It replaces the income of a breadwinner and helps cover living expenses such as food, housing, school fees and debt for many years after a funeral.
Top tip: shopping around for funeral cover? Be sure to ask an insurer these questions before you take out a policy.
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Why funeral cover matters in South Africa
Funerals are a significant cultural event for many South Africans. They are not just a time for mourning, but a time to honour loved ones with dignity and respect. Without funeral cover, the cost of a beautiful send-off can run into thousands of rands, with many families taking out loans to cover these expenses.
Life cover vs funeral cover: the key differences
Here are the main differences between funeral cover and life cover:
- Funeral cover pays out from R5 000 to R50 000 for immediate funeral expenses, while life cover can pay out up to R12 million providing long-term financial security for loved ones.
- Funeral cover premiums are generally affordable, and policies require no medical underwriting. Life cover premiums are higher, and policies require medical underwriting and, in some cases, medical exams.
- Funeral cover pays out quickly, often within 24 to 48 hours of a valid claim. Life cover claims can take weeks to pay out, depending on the nature of the claim.
- Funeral cover is intended to pay for funeral-related costs, including transportation and memorials. Life cover helps families replace the income of a breadwinner, settle debt and pay for education expenses.
- Funeral policies can cover multiple family members on one plan. Life cover policies cover the death of only one person, the life assured.
Top tip: 1Life Pure Life Plus combines life and funeral cover on one policy, with savings of up to 28% on monthly premiums:
- Up to R12 million life cover and up to R50 000 funeral cover for up to 16 family and extended family members
- No medical exams, just an HIV swab
- Fixed premiums for the first 12 months
- No waiting periods for natural or accidental death
- R5 000 memorial benefit, R6 000 grocery benefit and a repatriation service
Include both in your financial plan
Funeral cover pays for immediate funeral costs and ensures a beautiful send-off for loved ones while life cover offers long-term financial protection for your family. Having both means you can cover funeral expenses and provide for your family if a breadwinner passes away.
Be the one to change your family’s future. Speak to a 1Life consultant about 1Life Funeral Cover or 1Life Pure Life Plus today.
Frequently asked questions
Do I need funeral cover if I already have life cover?
Yes, because life cover claims can take time to process, leaving families without immediate funds for a funeral. Funeral cover pays out quickly, often within 24 hours of a valid claim.
How much funeral cover do I need?
Consider the cost of a funeral, including transport and catering. In South Africa, a funeral can cost between R15 000 and R50 000, so choose cover that matches these expenses.
Can multiple people be covered on one policy?
Yes. 1Life Funeral Cover allows you to cover up to 16 family members under one policy.
Will I need medical checkups to get funeral cover?
No. Funeral cover requires no medical exams, making it simple and affordable to take out.