Last reviewed: November 2026. How we work: our editorial standards, corrections policy and how Curemed is paid. General information, not advice. A personalised recommendation follows a written needs analysis under the FAIS Act.
By Hagop Jaghlassian, CEO at Curemed. Reviewed by Roxanne Hurter-Ehlers, Director of People and Governance.
Funeral cover is a life insurance policy that pays a cash amount to help pay for a funeral when someone covered by the policy dies. In South Africa the Policyholder Protection Rules limit how long a waiting period can be, what a funeral policy may exclude and how quickly the insurer must decide a claim.
In short
- Funeral cover is life (long-term) insurance. It pays a lump sum to the beneficiary after a death, up to the cover amount you chose.
- Under the Policyholder Protection Rules, a waiting period for death from natural causes may not be longer than six months, or a quarter of the policy term if that is shorter. There may be no waiting period for an accidental death.
- Once the insurer has all the documents it needs, it must decide a funeral claim within two business days.
- You have 31 days to cancel a new policy, and if a monthly premium is late your cover stays in place for 15 days after the due date.
- Complaints about funeral policies are common: the National Financial Ombud Scheme recorded 2,496 funeral complaints in 2025.
What is funeral cover?
Funeral cover pays a lump sum when a person covered by the policy dies. The money goes to the beneficiary you name, usually within days, and is meant for funeral costs such as the coffin, transport, the venue, catering and the burial or cremation. Many policies let you add your spouse, children and sometimes parents or extended family, each at an extra premium.
Funeral cover is life insurance, also called long-term insurance. The Policyholder Protection Rules (Long-term Insurance) define a funeral policy as a life policy underwritten under the funeral class of life insurance business. That makes it different from short-term insurance, which covers your car, your home and its contents.
How is funeral cover different from life cover?
Both are life insurance. Funeral cover pays a smaller amount that is meant to be available quickly for a funeral, and claims are usually simple. Life cover pays a larger amount to replace income or settle debts, and usually involves more underwriting, such as health questions. The maximum funeral benefit an insurer may offer on a life is prescribed by the Prudential Authority (rule 2A.4.2), so funeral cover is not a substitute for life cover if your family depends on your income.
How long is the waiting period on funeral cover?
A waiting period is the time after your cover starts during which the policy does not pay. The rules set firm limits for funeral policies:
- Natural causes: the waiting period may not be longer than six months, or a quarter of the policy term if that is shorter (rule 2A.6.1).
- Accidents: an insurer may not impose any waiting period for death caused by an accident (rule 2A.6.2).
- Renewals: no new waiting period may apply when a policy is renewed (rule 2A.6.4).
If you are replacing an existing funeral policy, tell the new insurer and give proof of your previous cover. The rules require the insurer to ask about prior cover and whether its waiting period was completed (rules 2A.6.5 to 2A.6.9). Do not cancel the old policy until the new one is in force and you know which waiting periods apply.
What can a funeral policy exclude?
- Pre-existing conditions: a funeral policy may not exclude a death because of an illness the person already had, other than through the waiting period for natural causes (rule 2A.7.1).
- Suicide: a suicide exclusion may not last longer than 12 months from the start of the policy (rule 2A.7.2).
- Changes to the terms: the terms may not be changed in the first 12 months after the policy starts, unless the insurer can show actuarial grounds or the change benefits you (rule 2A.5.1).
Read the policy schedule for who exactly is covered. A policy covers only the people named on it, within the age limits and relationships the insurer allows, and a claim for someone who does not meet those terms can be declined.
How quickly must a funeral claim be paid?
The insurer must decide a funeral claim within two business days after it has received all the documents it needs (rule 2A.8.1). Insurers usually ask for the claim form, a certified copy of the death certificate, the identity documents of the deceased and the claimant, and the bank details of the beneficiary. Some ask for more, such as a police report after an unnatural death. Ask your insurer for its document list now, so the family knows what to gather.
The insurer must tell you its decision in writing within 10 days of making it. If it rejects or disputes the claim, you have at least 90 days to make representations, and the insurer must reply within 45 days (rule 17.6).
What happens if you miss a funeral premium?
For a monthly premium, your cover stays in force for 15 days after the due date, and the insurer must tell you within 15 days that the premium was not paid (rule 15A.1). If a death happens during that time, a valid claim is paid less the unpaid premium (rule 17.11.1). If the premium is still not paid, the policy can lapse, and a new policy may come with a new waiting period. Keep your debit order up to date and tell the insurer when your bank details change.
Can the insurer increase your funeral premium?
Yes, but only with notice. The insurer must tell you in writing, with reasons, about any change to your premium or terms at least 31 days before it takes effect, and at least 31 days before a renewal (rules 11.6.4 to 11.6.6). It must tell you in advance about a review that is expected to increase your premium (rule 15.6), and offer alternatives, such as reducing the benefit, instead of only increasing the premium (rule 15.7). Premiums for older family members usually cost more, so check how premiums change as the people on the policy get older.
Can I cancel a new funeral policy?
Yes. On a new policy with a term longer than 31 days you may cancel within 31 days of receiving the policy information, as long as no claim has been made or paid and no insured event has happened. Premiums are refunded, less the cost of the cover you actually had (rule 4).
How much funeral cover do you need?
Start with what a funeral in your family would actually cost, including travel for relatives, food and the burial or cremation, and choose cover that matches it. More is not always better:
- the maximum benefit per life is prescribed, so you cannot insure one person for an unlimited amount;
- several small policies on the same person mean several premiums, several sets of terms and several waiting periods;
- if your family would need money beyond the funeral, for example to replace your income, life cover is usually the better tool.
Review your funeral cover when your family changes, for example after a marriage, a birth, or when a parent moves in with you.
Where do you complain about a funeral claim?
Start with the insurer and use its complaints process. The National Financial Ombud Scheme only looks at a complaint after you have raised it with the insurer first.
If the problem is not resolved, complain to the NFO, which took over the work of the Ombudsman for Long-Term Insurance on 1 March 2024. Its service is free. In 2025 the NFO recovered R299.6 million for life insurance complainants. Under the NFO Scheme Rules, a complaint must usually be brought within three years of the date you became aware, or should reasonably have become aware, that you had cause to complain, and life insurance complaints are not subject to a monetary limit. Contact the NFO on 0860 800 900 or through nfosa.co.za.
How can an Advisor help with funeral cover?
A Curemed Advisor can compare funeral and life cover from several insurers, check who is covered and on what terms, and look at your funeral, life, medical aid and Gap Cover together so that you are not paying twice for the same risk. For employers, we also arrange group funeral schemes as part of employee benefits. Ask an Advisor to review your cover.
Frequently asked questions
Is there a waiting period for accidental death on funeral cover?
No. Under the Policyholder Protection Rules an insurer may not impose a waiting period for death caused by an accident. A waiting period of up to six months may apply to death from natural causes.
How long does a funeral claim take to pay?
The insurer must decide the claim within two business days after it has received all the documents it needs. Having the claim form, the death certificate, identity documents and bank details ready speeds this up.
Does funeral cover pay if the person was already ill when the policy started?
A funeral policy may not exclude pre-existing conditions except through the waiting period for natural causes, which may not be longer than six months. After the waiting period, a death from an existing illness is covered.
Can I cancel a funeral policy?
On a new policy you have 31 days after receiving the policy information to cancel, provided no claim has been made. Your premiums are refunded, less the cost of the cover you had. After that, the cancellation terms in your policy apply.
What is the difference between funeral cover and life cover?
Both are life insurance. Funeral cover pays a smaller lump sum quickly for funeral costs, and the maximum benefit per life is prescribed. Life cover pays a larger amount, for example to replace income or settle debts, and usually involves more underwriting.
