The Difference Between Life Cover and Funeral Cover — And Why You Might Need Both

When life is busy and money is tight, it’s easy to think of insurance as something you’ll sort out “later.” But the truth is, having the right cover can make a huge difference — especially when your family needs it most. Two of the most common types of insurance in South Africa are funeral cover and life cover. They sound similar, but they’re actually quite different. Here’s what you need to know.

What is Funeral Cover?

Funeral cover helps your family pay for your funeral when you pass away. It pays out quickly — usually within 24 to 48 hours — and covers things like:

• The coffin
• Transport
• Food and catering
• Burial or cremation costs
• Tents, chairs, and other setup needs

Most funeral policies pay out between R5,000 and R50,000, depending on your plan. You can also include other family members under one policy, which makes it more affordable.
Why it’s important: Funerals in South Africa can cost R15,000 or more. Without funeral cover, families often struggle to cover costs or end up borrowing money just to give their loved one a proper send-off.

What is Life Cover?

Life cover, also called life insurance, pays a larger amount of money to the people you choose (called beneficiaries) when you die. This money can be used to:

• Pay off debts like a house or car
• Cover your children’s school fees
• Help your family with everyday expenses
• Build a more secure future for your loved ones

Life cover policies usually pay out from R100,000 up to R1 million or more, depending on what you choose and what you can afford.
Why it’s important: Life cover gives your family financial support after you’re gone — not just for the funeral, but for everything that comes after.

So, Which One Should You Get?

If possible, it’s wise to have both.
Funeral cover gives your family money quickly, to help with the funeral. Life cover helps your family long-term, when they need financial support to carry on with life.
They work together — one helps now, the other helps later.

Final Thoughts

Insurance doesn’t need to be expensive or complicated. Even small premiums each month can go a long way to protect your family.
If you can’t afford both right now, start with funeral cover — it’s usually more affordable. Then, when you’re able, add life cover for extra peace of mind.
Because one day, your family will be grateful that you planned ahead.