Reason for Rapid Growth of Funeral Insurance in South Africa

Funeral insurance is one of the trending insurance product in South Africa. It generally covers the funeral and burial expenses of the person covered under the policy. These policies are either issued by the employers for its employees and his dependents or people buy them by themselves.

Urbanization

The rapid increase of urbanization has given a much boost to this product. Before people use to live in close communities where their near and dear ones use to take care of their burial ceremony after their death however people in city are more of self-dependent and generally feel the need of such an insurance.

People in cities are often secluded and live lonely lives. Also, the increased cost of city life bars other members to spend much on such ceremonies. Sometimes there is no one to carry out the ceremony with the family and they must rely on government officials or service providers to carry out the ceremony. In such instances a funeral insurance comes out to be handy to cover all the expenses for burial.

Funeral insurance covers all the expenses in case of natural death but is not applicable if a person commits a suicide or is killed in a self-inducted injury or accident.

High Demand of this product

Funeral policies are high in demand, especially in cities. There are approximately fourteen million households in the cities who want to cover themselves and their immediate family members with this kind of policy. A burial ceremony can cost from one thousand dollars to several thousand dollars and no one want to burden their family with their last ceremony. Hence, a funeral insurance has become one of the favorite product which takes care of all the burial expenses rights from Church expenses to burial and cremation expenses to establishing a headstone and monuments over the cremation ground.

The industry is booming because of this high demand. There are around forty authorized insurance companies in South Africa which offer this product. Other than that, there are many other local companies which claim to cover your burial expenses for a small monthly premium.

Funeral Costs

The basic funeral may cost only 500 dollars however most of the south African families like to have a lavish and grand burial ceremonies for their family members which is often followed by lavish after tears party which may go up to 3000 dollars. This kind burial can be a burden on the immediate family members and they may not be able to carry it out as per their wish. Hence most of the South African families these days go for a funeral insurance which takes care of all these funeral expenses for a small monthly premium.

Generally, the funeral insurance covers not just one family member but all immediate family members of the insurer. Thus, people can bid adieu to their loved once without feeling the heat of extra spending during the cremation ceremony. Be sure to ask the comprehensive funeral insurance details from your insurance agent in South Africa before you invest into one.

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