The high cost of mourning

Know the details of your plan so you don’t spend your savings.

It is important to know the true cost of funerals in South Africa. This will prevent underinsurance which will force you to fork out all your savings at a time when you should be mourning with your family.

Funeral cover is the largest insurance segment in SA but despite the average South African owning up to four policies, most families are still underinsured and end up taking expensive loans or credit card debt to cover a loved one's funeral expense, says Clinton Macdonald, the CEO of KGA Life.

"South Africans underestimate what the average funeral costs because there are many potential costs they may not consider or be aware of when they take out their policies at banks, insurers, funeral parlours or burial societies.

"Financial distress arises when families are out of pocket and end up paying 20%-40% interest on emergency credit. In the current economic climate, it is time for consumers to get educated about what funerals cost today to enable them to make more informed financial decisions."