Life insurance vs. funeral cover

Why it’s vital to understand the difference

- CORNEL BASSON

IN THE 2025 FNB Retirement Insights Survey, 78% of respondents South Africans over 60 said that they have funeral cover, while 38% (of the total market) confirmed having life insurance. The gap says a lot.

Most South Africans see funeral policies as essential because of the rising costs of burial and the deep cultural expectation to give loved ones a dignified sendoff. Life insurance, on the other hand, is less understood—despite its role in securing long-term financial stability for those left behind.

It's important to understand the functions of these two types of cover, and how they can work together to protect your finances and the people you care about.

Funeral cover Quick help with immediate needs

Funeral cover is designed to pay out quickly—usually within 24 to 48 hours of a valid claim—to meet immediate funeral-related expenses.

These costs are significant in South Africa, often ranging from R30 000 to R100 000 depending on catering, travel, cultural rituals, and the preferences of loved ones. Expenses can begin even before the funeral, with preparations and gatherings that happen before the event.

Considering these costs, it’s a good thing that 78% of over-60s surveyed have funeral cover, with 75% of those people saying that the cover will reduce the financial burden on their families.