Stacking funeral policies won’t secure your family’s financial freedom
When death occurs, it is expected that family members rally around each other not only for emotional support; but to also cobble together financial resources to give their loved one a well-considered farewell.
To make sure that their loved ones do not struggle after death, some people ensure they take out more than one funeral policy to cover immediate expenses for the funeral. In addition, they use this as a way to shore up the financial health of the family in the aftermath of death.
According to statistics from a Burreau of Market Research report conducted in conjunction with Metropolitan, around 75% of South African households hold a funeral policy. This high penetration pales in comparison to other non-funeral insurance products such as life insurance where only 25% of households have at least one family member contributing to a life insurance policy. The 2024 Finscope Consumer Survey released in October 2025, a high number of South Africans with funeral cover hold more than one policy, while a significant number view funeral cover as a savings instrument because the money paid out doesn’t have to all go to funeral expenses.
This behaviour is not accidental. Many people take out two, three, sometimes even four funeral policies across different insurers, with the intention of leaving behind a larger payout for their families. It is a way of trying to create a financial cushion, using a product that is familiar, accessible and trusted.
However, despite how well-intentioned this action is, when you step back there are limitations and a better way of doing things. This is according to Jay Malatji, Provincial General Manager for Northwest, Limpopo and Gauteng, at Metropolitan.
There are a few details that some consumers miss when it comes to approaching funeral cover in this matter,” said Malatji. “And for us in the financial planning space it is a concerning trend because it moves funeral cover beyond its original purpose. It is now no longer just about covering burial costs, but about trying to build some form of financial security in the absence of other options.
Details consumers need to be aware of when stacking funeral policies
Despite funeral policies having a cap of around R100,000 per insurer, there is nothing stopping someone from taking out policies with multiple providers. The result is that people are able to “stack” policies in a way that feels similar to saving.
However, cautions Malatji, each funeral policy comes with its own premium, as well as its own set of fees. Over time, paying for multiple policies can add up to a significant monthly expense. Over 10 or 20 years, that is money that could run into a few thousands of rands.
Yet even with multiple policies, the payout remains capped per policy and designed for short-term costs. Funeral cover is built to handle the immediate needs around death, not the ongoing financial needs of a household.
This is when financial planning becomes crucial because there are other products, such as life cover, that are designed for long term expenses. It is structured to replace income, settle debt, and support a family over time. No matter how many funeral policies are stacked, they cannot fully replicate that kind of long-term protection.
The different waiting periods of different insurers is another detail most consumers don’t consider until it is perhaps too late.
Said Malatji:
Because these policies are often taken out at different times, each one comes with its own terms. That includes waiting periods, which means not every policy will necessarily pay out when the family expects it to. What looks like multiple layers of protection on paper does not always translate into immediate access to money when it is needed most.
Another detail is the question of the cost over time as inflation and the time value of money takes its toll over time.
“Funeral cover is often seen as affordable, especially at entry level, but premiums do not always stay the same,” warned Malatji. “As policyholders get older, increases can come through, and when someone is paying for two or three policies, those increases are felt across all of them. What once felt manageable can become difficult to sustain.”
Malatji added that this is often where policies begin to lapse.
“When money is tight, people are forced to prioritise, and not every policy survives. The reality is that once a policy lapses, the premiums that have already been paid are not recovered. Years of contributions can simply fall away,” he said.
Consumers need to consider the trade-off
The money going into multiple funeral policies is money that is not being used elsewhere. Over time, that could have gone towards life cover, savings, or even reducing debt.
“For many South Africans, this is not simply a matter of making the wrong decision. Funeral cover is often the easiest entry point into financial protection for many reasons. For example, it does not require medical tests, premiums are generally lower, and the product is easier to understand. However, the challenge is that funeral cover has its limits and financial planning can assist consumers in finding better solutions for their needs.” Many providers have designed entry level life covers which do not require intense underwriting and blood tests. This is perhaps an area consumers not comfortable with blood tests and full underwriting on life covers should explore.
Financial freedom is not built on how much money is paid out when you die, but on how well your family is able to continue living without you. A life cover product is structured such that it provides this last wish. Your family misses you but not your income. It empowers you to continue to take care of your loved ones even in death.
As more South Africans look for ways to leave something behind, the shift may not be about having more funeral cover, but about having the right kind of life cover.
