Grave shortage in funeral cover risks financial ruin

Data shows 10% of policyholders are underinsured

- By Boitumelo Kgobotlo

As South Africans face growing financial pressure from the rising cost of living, many are discovering that their funeral policies may no longer be enough to cover modern-day funeral expenses.

Elaine Markus, head of personal lines insurance at Standard Bank Insurance Brokers, said it frequently occurs that families only realise their funeral policies fall short when it is too late, usually when a loved one passes away.

Without enough cover, he said, they would be forced to dip into savings, take out loans, or rely on burial societies and stokvels, which can create further financial stress.