Cost of dying: Funerals are expensive, and you might be under insured
The true cost of funerals in our country is incredibly high, and families can be caught with huge debts from laying their loved ones to rest.
Picture: © dolgachov/123rf.com
Relebogile Mabotja speaks with Clinton Macdonald, CEO of KGA Life
Listen to the interview in the audio below.
Death and funerals are often something we do not think about until the time actually comes to start making arrangements.
As a result, many South Africans under-estimate what the average funeral costs, and end up in financial distress in already difficult times.
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When what their funeral policy offers falls short, they can end up paying 20%-40% interest on emergency credit they needed to cover the costs.
On average a funeral for 50 guests costs R70 000 – R84 000.
However, certain traditional practices, long-distance repatriation and group travel can affect the cost significantly.
According to Macdonald people normally underestimate the cost of things like flowers, catering, rental cars, and travel for loved ones.
“Being prepared for that financially is crucial.”
- Clinton Macdonald, CEO of KGA Life
Most funeral policies will cap at R100 000, which will cover the average funeral, but you will need to check what the policy will cover he adds.
Scroll up to the audio player to listen to the interview.