What does funeral cover cost?

The cost of funeral cover varies a lot and you would do best to shop around, but armed with the knowledge of what will and won’t increase your premiums and what value it could add.

Don't focus on premiums alone - one insurer may be cheaper, but you could get a lot more value from another for a few rand more.

The factors that could affect your premiums include:

• The sum for which you are insured;
• The number of lives covered on your policy. Read more How many family members will be covered by my funeral policy?
• Your age and the age of those you insure when you take out the policy;
• Whether your policy is for a fixed period or for life, and whether you will pay premiums until you die. Read more How long is funeral cover in place?;
• The waiting periods that apply to the policy. Read more What waiting periods apply to my funeral cover?
• Any value-add benefits such as airtime or groceries you are offered;
• The number of premium holidays to which you are entitled. Read more How many times can you skip a premium on a funeral cover policy? And
• The benefit and premium increases.

The benefit may remain level or it may increase as long as the benefit does not exceed R100 000.

If the benefit remains level, the premiums may or may not increase annually as the premiums are not guaranteed. If the insurer finds the premiums are not sufficient to cover the claims and expenses, it may increase the premiums.

Some policies may include an annual benefit increase and the policy document should then tell you what that increase will be and by how much your premiums will increase each year.

Before the increase is applied, the insurer should inform you of the increase in the benefit and the premiums, and give you the option not to have the increase applied.