What is a Funeral plan And why You need It.

Death happens, so it makes sense to have a Funeral Plan. But what is it exactly?

This form of insurance allows families time to mourn, without the added stress of how to pay for a funeral.

A regular burial in South Africa today comes with a price tag of around R44 000. Not many people have that kind of ready cash in their bank accounts.

So how Does a Funeral plan Work?

Funeral plan

A funeral plan is an insurance policy, available for amounts from R10 000 to R50 000 for individuals and up to R250 000 for family cover.

The family receives a cash payout when the insured passes on, mainly to pay for funeral expenses. Some insurance firms, like Clientele, also offer extra benefits with funeral plan cover.

There are also plans that just pay for the cost of the funeral with no cash pay out.

What is a Family funeral Plan?

A family funeral plan insures not only the main policyholder but also his immediate family and, if selected, up to a total of eight other family members.

The age of the main policyholder determines the premiums, which are obviously less the younger you are.

What are The benefits?

Clientele offers the family of policyholders the following funeral plan benefits:

  • Free airtime worth R200 to help cover the cost of calls when making funeral arrangements
  • Grocery benefit worth R3 000
  • An unveiling benefit worth R2 000
  • Enhanced benefits
  • “Double” accident benefits
  • Transport benefit worth R2 000

How are Benefits paid?

Benefits get paid within 24 hours of receipt of all relevant documents. Some insurance companies pay out benefits 48 hours after approving a claim.

What documentation is Necessary?

When lodging a claim you need to submit:

  • A registration of death form (DHA 1663)
  • The deceased’s ID
  • The beneficiary’s ID

How benefit Payouts work

  • Families receive R200 free airtime to help cover the cost of funeral arrangements. This is paid out on approval of the claim
  • A grocery benefit of R3 000 comes two forms – Three instalments of R1 000 per month, or the full amount in one payment. **
  • An unveiling benefit of R2 000 which you must claim within 12 months. **
  • Enhanced benefits give your family access to a 24-hour funeral helpline. Professionals offer grief counselling, as well as assistance with funeral arrangements. Where necessary, enhanced benefits also cover the repatriation of a body, as well as discounted funeral supplier rates
  • “Double” accident benefits are payable in the event of accidental death, but only applies to the main policyholder. Beneficiaries receive double the amount insured eg. if the funeral plan is worth R50 000, beneficiaries will receive R100 000
  • The transport benefit of R2 000 gets paid directly to you to assist with funeral costs. **

**This benefit forms part of the total payout amount

Three of the benefits, totalling R7 000, will be deducted from the total value of the policy. If a policyholder has taken out a funeral plan worth R50 000, the family will receive a cash payout of R43 000 with the balance being paid out to them in the form of grocery, unveiling and transport benefits.

Are there Any other Benefits?

Clientele offers two types of funeral plans – a Dignity Plan and an Ultimate Dignity Plan.

  • All the benefits already discussed are available in the standard funeral plan, with the exception of the R2 000 transport benefit
  • In all cases, Clientele pays out the sum insured within 24 hours, provided that the necessary documentation is lodged
  • The funeral plans cover up to three children at no additional cost, as well as offering cover for up to 13 family members on one plan

Industry leader

Clientele recently made waves in the South African insurance industry when it announced that it would not only pay out the sum insured, but it would also pay back all the money spent on premium payments.

Not only that, but this industry leader also announced that, if requested, it would pay back half of the premium payments to policyholders aged 65 years.

This option can be exercised to help finance retirement needs, but only applies to policyholders who take out funeral plans before turning 50 years of age. The remaining half of the policy will be paid out to beneficiaries upon the death of the main member.

How to claim

When claiming, beneficiaries are given various options – telephone, fax, SMS or email:

  • Telephone – 011 320 3000
  • Fax – 011 320 3170
  • SMS – 31041 to receive a call back
  • Email – claims@clientele.co.za


Premiums and benefits vary from one company to the other, so it is vitally important to examine all options before selecting a funeral plan to suit personal needs.

A good site for funeral plan cost-comparisons is: http://www.hippo.co.za/funeral-insurance-quote/ Here visitors are asked to fill in their basic details and requirements and Hippo will search for the best options available to suit required needs.