Quick Facts

• Cheapest plans start from R22 per month (African Bank)
• Capitec offers cover from R25 per month for up to 21 family members
• Most plans pay claims within 24-48 hours
• Cover ranges from R10,000 to R100,000 per person
• Beware of fake funeral policies sold on social media

Why You Need Funeral Cover in South Africa

Funerals in South Africa are expensive and culturally important events. The average funeral costs between R20,000 and R50,000. Without funeral cover, families often go into debt or must rely on donations from relatives.

What funeral cover does:

• Pays a lump sum when someone covered by the policy dies
• Money is paid to the family within 24-48 hours in most cases
• Can be used for coffins, transport, burial plots, catering, and tombstones
• Covers you and your family members under one policy
• No medical tests needed for most plans

Under 2025 regulations, funeral cover is capped at a maximum of R100,000 per person. This protects consumers from paying too much in premiums.

✅ Top 5 Funeral Cover Providers Under R100 per Month

1. African Bank – From R22 per month

Why it’s the cheapest: African Bank offers the lowest starting premium in South Africa at just R22 per month. You can cover up to 8 family members under one policy and get cover up to R100,000.

Best for: People on very tight budgets who still want legitimate funeral cover.

Claims: Paid within 24 hours – guaranteed or they pay double.

2. Capitec Funeral Cover – From R25 per month

Why it’s popular: Capitec has 2.7 million active policies covering over 12 million lives. They issue one in every three new funeral policies in South Africa in 2025. You can cover up to 21 family members on one plan.

Best for: Capitec bank customers and people who want to manage their policy on the banking app.

Special benefits: Double payout for accidental death from day one, no automatic annual premium increases, can pause premiums for up to 6 months.

3. Liberty Funeral Plus Plan – From R40 per month

Why it’s flexible: Liberty lets you cover up to 32 people on one plan. You choose your own cover amount from R5,000 to R100,000. They also offer extra benefits like a R10,000 tombstone benefit.

Best for: Large families who need to cover many relatives including parents and extended family.

4. Metropolitan Funeral Plan – From R40 per month

Why it’s reliable: Metropolitan offers payment protection benefits. If you become disabled or retire, they cover your premiums. You can also skip premiums in tough times and your plan stays active.

Best for: People who worry about not being able to afford premiums if they lose their job or get sick.

5. AVBOB – From R46 per month

Why it’s comprehensive: AVBOB is more expensive but offers actual funeral services, not just cash. If you use their funeral parlours, you get free services worth up to R22,500 plus your cash payout. They also give you back one year’s premiums every 5 claim-free years.

Best for: People who want help arranging the actual funeral, not just money.

Detailed Comparison of Funeral Plans Under R100

Provider	Starting Premium	Maximum Cover	Family Members
African Bank	R22/month	R100,000	Up to 8
Capitec	R25/month (app) R40/month (branch)	R100,000	Up to 21
Liberty	R40/month	R100,000	Up to 32
Metropolitan	R40/month	R100,000 (main) R70,000 (extended)	Up to 20
AVBOB	R46/month	R50,000	Unlimited children Up to 6 extended

Important Benefits to Look For in 2025

1. Fast Claims Payment

Look for plans that pay within 24-48 hours. Your family needs money quickly to make funeral arrangements. Most good providers pay within this time if you submit all documents correctly.

2. No Automatic Premium Increases

Capitec offers this benefit. Your premium stays the same every year unless you change your cover amount. Other providers may increase premiums annually to keep up with inflation.

3. Waiting Period Waivers

If you switch from another insurer and already completed waiting periods, some providers waive their waiting periods. This means you’re covered immediately for natural death, not just accidents.

4. Double Accidental Death Benefit

If someone dies in an accident, the payout doubles from day one. No waiting period. This helps families deal with unexpected tragedy.

5. Repatriation Benefits

This covers transporting the body within South Africa (or nearby countries) to the place of burial. Very important if your family lives far from where you work.

6. Pause Option

Some plans let you pause premiums for up to 6 months if you lose your job or have financial problems. You won’t have cover during this time, but you also won’t lose your policy completely.

✅ How to Choose the Right Plan for Your Family

Step 1: Calculate how much cover you need

• Basic funeral (municipal burial): R10,000 – R20,000
• Standard funeral (private burial, catering): R25,000 – R40,000
• Premium funeral (private burial, large gathering, tombstone): R50,000 – R80,000

Step 2: List all family members you want to cover

Think about your spouse, children, parents, and any other dependents. Remember, covering more people means higher premiums.

Step 3: Check your monthly budget

Be honest about what you can afford every month. It’s better to have a smaller policy you can pay consistently than a big policy that lapses because you can’t afford it.

Step 4: Compare waiting periods

• Accidental death: Usually no waiting period
• Natural death (immediate family): 4-6 months typically
• Extended family: May be 6-12 months

Step 5: Check the claims process

How do you submit a claim? Can you do it online or via WhatsApp? How long does payment take? Choose providers with simple, fast claims processes.

🚨 WARNING: Avoiding Funeral Cover Scams

Funeral cover scams are RIFE in South Africa in 2025. Many unsuspecting people have paid fraudsters for non-existent policies, only to discover the scam when trying to claim after a death. The FAIS Ombudsman receives numerous complaints monthly about fake funeral policies.

Common Scam Red Flags:

How to Verify a Legitimate Provider:

• Check FSP Registration: Visit www.fsca.co.za and search for the provider’s FSP number
• Confirm Insurer: Ask which licensed insurer underwrites the policy (not just the broker or administrator)
• Get Policy Documents: Demand to see the policy wording, terms, and conditions in writing
• Use Official Channels: Only apply through official bank branches, verified websites, or the Capitec/FNB apps
• Never Sign Blank Forms: It’s illegal for any FSP to ask you to sign blank documents

If you suspect a scam, report it immediately to the FSCA at 0800 110 443 or the South African Fraud Prevention Services.

How to Apply for Funeral Cover

Requirements (generally):

• South African ID number (or valid passport for non-citizens)
• South African bank account for debit orders
• Contact details (phone number and physical address)
• Birth certificates for children you want to cover
• ID copies of family members you want to include

Application Options:

Option 1: Online/Mobile App

Capitec: Apply through the Capitec banking app. Cheapest option at R25/month. Existing Capitec customers can activate cover in minutes with no paperwork.

African Bank: Apply online at www.africanbank.co.za. Get a quote instantly. Cover from R22/month.

Liberty & Metropolitan: Get quotes on their websites or request a callback from a consultant.

Option 2: In-Branch

Visit any Capitec, FNB, Standard Bank, ABSA, or Nedbank branch. Bring your ID and bank details. A consultant will help you apply. Note: Capitec charges R40/month for branch applications versus R25/month on the app.

Option 3: Phone

Call providers directly to apply or get quotes:

• African Bank: 0861 888 786
• Capitec: 0860 10 20 43
• Liberty: 0860 456 789
• Metropolitan: 0860 724 724
• AVBOB: 0860 28 2621

⚠️ Important: Understanding Waiting Periods

All funeral policies have waiting periods. This means you cannot claim immediately after taking out the policy.

Typical Waiting Periods in 2025:

• Accidental Death: No waiting period – covered from day one
• Natural Death (main member & spouse): 6 months usually
• Natural Death (extended family): 6-12 months
• Suicide: 12 months minimum (some insurers don’t cover suicide at all)

IMPORTANT: If someone dies during a waiting period from natural causes, you usually won’t get a payout. However, if death is from an accident, most policies pay out immediately even in the first month.

Keep paying your premiums during waiting periods. If you stop paying, you lose your cover completely and will have to start over with new waiting periods if you reapply.

How to Claim When Someone Dies

Documents needed for claims:

• Death certificate (BI-1663/DHA-1663 form from Home Affairs)
• Certified copy of the deceased’s ID document
• Policy number
• Claimant’s (beneficiary’s) ID and bank details
• Completed claim form from the insurer

How to submit claims in 2025:

Capitec Claims:

Call 0860 10 20 43 or use the app. Upload documents via the app. Claims typically paid within 4 hours if all documents are correct.

African Bank Claims:

Submit online at www.africanbank.co.za or call 0861 888 786. Guaranteed payment within 24 hours or they pay double your claim.

Metropolitan Claims:

Call 0860 724 724 or send “Claim” to the same WhatsApp number. Their WhatsApp chatbot guides you through the process. Claims paid within 24-48 hours.

Most claims are paid within 24-48 hours if you submit all documents correctly. Delays happen when documents are incomplete or incorrect.

✅ Where to Complain if You Have Problems

If your insurer refuses to pay a claim or you have other problems with your funeral policy, follow this process:

Step 1: Complain to Your Insurer First

By law, you must give your insurer 6 weeks to resolve the problem. Contact their complaints department in writing (email or letter). Keep copies of all correspondence.

Step 2: Escalate to the FAIS Ombud

If your insurer doesn’t resolve the issue within 6 weeks, or you’re unhappy with their response, complain to the Office of the Ombud for Financial Services Providers (FAIS Ombud):

• Phone: 012 762 5000 or 0860 324 766
• Email: info@faisombud.co.za
• Website: www.faisombud.co.za
• Address: P.O. Box 74571, Lynnwood Ridge, Pretoria, 0040

The Ombud’s services are FREE. They can force insurers to pay valid claims.

Step 3: Report Scams to the FSCA

If you’ve been scammed by a fake funeral policy, report it to the Financial Sector Conduct Authority:

• Phone: 0800 110 443 / 0800 202 087
• Email: info@fsca.co.za
• Website: www.fsca.co.za

Step 4: Report Fraud to the Police

If you’ve lost money to funeral cover scammers, open a criminal case at your nearest police station. Also report to:

• SABRIC (South African Banking Risk Information Centre): 0860 557 557
• South African Fraud Prevention Service: 0860 101 248

Best Overall Value: Capitec Funeral Cover (from R25/month on app) offers excellent value with 21 family members, no premium increases, double accidental death benefit, and the convenience of managing everything on your banking app. With 2.7 million active policies, they’re the fastest-growing provider for good reason.

Best for Tight Budgets: African Bank (from R22/month) is the absolute cheapest legitimate option. Their 24-hour guaranteed payout or they pay double shows confidence in their service. Good for basic cover when money is very tight.

Best for Large Families: Liberty Funeral Plus Plan (from R40/month) lets you cover up to 32 people under one policy. Great if you’re supporting parents, siblings, and extended family.

Best for Peace of Mind: Metropolitan (from R40/month) offers payment protection – they’ll cover your premiums if you become disabled or retire. Good for people worried about job security.

Best for Full Service: AVBOB (from R46/month) costs more but includes actual funeral services worth R22,500 if you use their parlours. Plus they give back one year’s premiums every 5 claim-free years.

MOST IMPORTANT: Only buy funeral cover from licensed insurers. Verify the FSP number at www.fsca.co.za before paying any money. Get policy documents in writing. Beware of social media policies and cash collectors. If it seems too good to be true, it’s a scam.

Remember: The best funeral cover is the one you can afford to keep paying consistently. A lapsed policy gives you nothing. Start with basic cover and upgrade as your financial situation improves.