As Real-World Costs Rise, So Do Burial Expenses: Standard Bank Encourages You To Reassess Funeral Cover

The rising cost of living doesn’t just affect daily expenses – it also impacts funeral costs, making it essential to ensure that coverage remains sufficient over time.

Too often, families only discover that their funeral policies fall short when faced with unexpected expenses, forcing them to dip into personal savings or take on debt.

July is recognised as National Savings Month in South Africa – an opportunity to focus on personal finance, highlighting financial preparedness. One often-overlooked risk is underinsurance.

“The 2024 Standard Bank Flexible Funeral Plan data shows that 10% of policyholders have coverage below R15,000 – an amount unlikely to cover even basic funeral expenses. These individuals face financial vulnerability, with many relying on emergency savings to bridge the gap,” said Elaine Markus, Head of Personal Lines Insurance at Standard Bank Insurance Brokers.

“Meanwhile, 28% hold policies between R15,000 and R50,000, enough for a basic funeral but insufficient for extended ceremonies, above average coffins, or costs associated with urban burials. In contrast, 62% have coverage exceeding R50,000, ensuring they can manage unexpected expenses, provide a dignified funeral ceremony and honour cultural traditions without incurring additional financial strain.”

Insights gathered by Standard Bank Insurance Brokers reveal that funeral expenses range from R15,000 to R50,000 for basic services, with more elaborate ceremonies exceeding R120,000.

Burial plots alone cost over R3000 in urban areas, while locations just outside of cities or large towns can charge up to R15,000. Coffins vary from R800 to R50,000, and hearse rentals, floral arrangements, catering, and program printing can push costs even higher. Post-burial expenses such as tombstones add additional financial pressure, ranging between R8,000 and R90,000.

Many families lack dedicated burial savings, relying on stokvels, burial societies, or microloans, options that can result in financial pressure.

“The question isn’t whether one can afford a funeral policy, its whether one can afford not to have funeral cover.  Funeral costs should never compromise financial security, but without adequate insurance, families risk depleting savings meant for essential expenses like education, homeownership, or retirement,” says Markus.

“Funeral cover serves as a financial safeguard, ensuring that unexpected expenses don’t derail your long-term savings goals. Beyond offering peace of mind, it plays a vital role in maintaining financial stability. The key is to strike the right balance in managing funeral cover, your insurance, and savings in a way that protects your future while ensuring you’re prepared for life’s uncertainties.”

Revisiting your funeral policy annually ensures it remains aligned with real-world costs. As inflation rises and burial expenses continue to shift, staying informed and making adjustments can protect both financial health and peace of mind.

When you’ve worked hard to build a future for your family, you should not let unplanned funeral costs undo it. Speak to your broker today to ensure your cover matches your love, your legacy, and the life you’ve built.