It is estimated that South Africans spend a minimum of R23 500 to a maximum over R120 000 on funeral costs, according to Metropolitan.
These figures are just the tip of the iceberg as these prices do not include the costs of catering, flowers, and tombstones.
Considering the rise in cost of living it is unlikely that funeral related costs will come down anytime soon.
South Africa is the world’s fourth most expensive country for dying, with 13% of the annual average wage used to pay for funeral costs, according to Yaaseen Albertyn, product management head at Metropolitan.
For the people who don’t have funeral cover, burying a loved one is unaffordable, forcing them to dip into their savings or take on debt to take care of the costs.
Understand all possible funeral costs
The first step is to know and understand the possible costs associated with having a funeral, including pre-funeral costs, such as repatriation, livestock, clothes, undertaker costs, coffin and cemetery costs.
Funeral costs on the day include the service venue, flowers, catering, refreshment venue, funeral service, programmes, music and chairs, while post-funeral costs can include a cleansing and unveiling ceremony, and a tombstone.
Albertyn said: “Once you know what kind of funeral you want and the associated costs, you can then select the appropriate cover amount.
“Don’t be tempted to choose a cover level you can’t afford. Rather manage your expectations on the kind of funeral you can afford that won’t get your loved ones into debt.”
Using funeral cover wisely
According to Thembisa Mapukata, general manager: Tied Distribution at Old Mutual Mass and Foundation Cluster, funeral cover is designed to pay for specific and immediate costs related to the funeral.
People need to make sure that the funeral that has been arranged is in line with the available funds.
“Drawing up a budget is critical and getting consensus from family members is important to ensure that costs don’t get out of control,” Albertyn said.
When arranging a funeral, people need to focus on what is important and non-negotiable and saving on other items, such as extravagant flower arrangements and expensive catering, Albertyn added.
Why people overspend on funerals
Lack of pre-planning is one of the major reasons for going over a budget when planning a funeral. When a loved one dies, people are not in the right frame of mind to make smart budget decisions.
Speak with a trusted friend or family member to help you with getting quotes so you can compare prices before your final decision.
“You can avoid financial hardship for your loved ones and still have the dignified send-off you want by taking out the appropriate level of funeral cover,“. Albertyn said.
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