Are Your Employees Paying for Funeral Cover They Already Have? Why Benefit Clarity Matters

25 August 2026

For many South African employees, funeral cover is not something they have once.

They may have a policy through their employer.

Another through a bank.

A policy taken out personally years ago.

Cover through a spouse’s workplace.

And perhaps additional policies covering parents, children or extended family members.

There may be perfectly legitimate reasons for holding more than one funeral policy.

But there is an equally important question:

Does the employee actually understand what they are paying for?

In 2026, this issue has attracted increased attention in South Africa.

The Long-Term Insurance Amendment Bill [B17–2026], introduced in Parliament in June, specifically seeks greater protection and disclosure for consumers who hold multiple funeral policies relating to the same beneficiaries or life events.

For employers offering group funeral schemes, this is a timely reminder that a benefit is only truly valuable when employees understand it.

Funeral Cover Is Deeply Embedded in South African Financial Planning

Funeral cover occupies a unique position in South Africa.

For many households, providing a dignified funeral for a loved one is both a financial and cultural priority.

Costs can arise quickly and may include:

Funeral services
Burial or cremation costs
Transport
Catering
Family travel
Venue expenses
Cultural or religious requirements
Administrative costs

Unlike some longer-term insurance products, funeral cover is designed to provide financial support during a period when families may need money urgently.

It is therefore understandable that many people seek additional protection.

The problem begins when several policies accumulate without the policyholder having a clear picture of their overall cover.

How Does Duplicate Cover Happen?

Most people don’t deliberately sit down and decide to build a portfolio of overlapping funeral policies.

It often happens gradually.

An employee may already have individual funeral cover when joining a company that provides a group scheme.

Later, they may open a bank account that offers another funeral product.

Their spouse may obtain family cover through work.

They may take out another policy specifically for a parent.

Over several years, premiums accumulate.

At some point, the household may be paying for multiple policies without clearly understanding:

Who is covered
For how much
Under which policy
Who pays the premium
Who receives the benefit
Which waiting periods apply
What exclusions exist
What documents will be required at claim stage

That is not necessarily an insurance problem.

It is often an information problem.

Why This Matters in 2026

South Africa’s Long-Term Insurance Amendment Bill introduced in 2026 specifically focuses on the treatment of consumers with multiple funeral policies covering the same beneficiaries.

The proposed legislation includes provisions aimed at improving disclosure about the consequences of holding multiple policies and giving policyholders clearer protections in this area.

The Bill is still going through the parliamentary process and should not be treated as enacted law.

But its introduction highlights a broader issue that employers and benefit providers should already be considering:

Do employees understand the insurance benefits they are paying for?

For employers, this extends far beyond regulatory compliance.

It goes to the effectiveness of the employee-benefit strategy itself.

More Cover Isn’t Automatically Better Cover

There can be a tendency to think:

“If one funeral policy is useful, several must be even better.”

But financial protection should be evaluated according to the need it is intended to meet.

An employee paying several premiums every month should understand what additional protection each policy provides.

If they cannot explain the difference between the policies, there may be an opportunity to review whether their cover is structured effectively.

The goal is not necessarily to have the most policies.

The goal is to have appropriate protection that is understood, affordable and fit for purpose.

Group Funeral Schemes Can Provide Valuable Cover

Employer-sponsored group funeral schemes can play an important role in financial protection.

Because employees are covered collectively, group structures may provide benefits that are accessible and cost-effective across a workforce.

Depending on the scheme design, cover may include:

The employee
A spouse or partner
Children
Extended family members
Accidental death benefits
Additional value-added services

For many employees, this may be one of the most meaningful financial benefits provided by their employer.

But HR teams should not assume that employees automatically understand what is included simply because the scheme exists.

The Benefits Statement Nobody Reads

One of the biggest weaknesses in employee benefits is communication.

An organisation may have negotiated an excellent funeral scheme.

The insurer may provide clear policy documentation.

HR may have distributed the information when the employee joined.

But three years later, ask the employee:

“How much funeral cover do you have through work?”

and the answer may be:

“I’m actually not sure.”

Ask:

“Is your spouse covered?”

Again:

“I think so.”

That uncertainty matters.

A benefit sitting unnoticed on a payslip is not delivering its full value.

Employees Should Know Five Basic Things

At minimum, someone covered under a group funeral scheme should understand:

1. Who Is Covered?

Does the policy cover only the employee?

Does it include a spouse or partner?

Children?

Parents?

Extended family?

Employees should not need to discover the answer only after someone dies.

2. What Is the Benefit Amount?

What amount is payable for each category of insured person?

The benefit for the employee may differ from that of a spouse, child or extended family member.

3. What Does It Cost?

If employees contribute towards the premium, they should understand the deduction.

If the employer fully funds the benefit, employees should still understand its value.

4. Are There Waiting Periods or Exclusions?

The circumstances in which a benefit is payable should be communicated clearly.

Employees should know that terms and conditions matter.

5. How Does the Family Claim?

This may be the most important question of all.

If the employee dies tomorrow, would their family know:

That the cover exists?
Who to contact?
Which documents are required?
Where to submit the claim?

A policy that nobody knows how to claim from can create unnecessary difficulty at exactly the wrong moment.

Think About the Family, Not Only the Employee

Benefits communication often stops with the employee.

That can be a problem with funeral cover.

The employee may understand the scheme perfectly.

But if the employee is the person who dies, they are no longer available to explain it to the family.

Organisations should therefore consider how employees can communicate essential benefit information to spouses or family members.

This doesn’t mean employers need to contact every dependant directly.

It may simply mean encouraging employees to keep important benefit details somewhere their family can access.

For example:

Scheme name
Contact number
Policy or membership information
HR contact details
Claim requirements

That small administrative step could make a considerable difference during bereavement.

Benefit Reviews Should Look Beyond Premium

When an organisation reviews its group funeral scheme, cost is naturally important.

But the cheapest premium does not automatically equal the best employee benefit.

Employers should also examine:

Benefit levels
Dependant structures
Extended-family options
Claims processes
Administrative support
Employee communication
Eligibility rules
Waiting periods
Policy exclusions
Service standards
Provider responsiveness
Claims experience

The real test of funeral cover comes at claim stage.

That is when the quality of the structure, administration and support becomes visible.

Claims Experience Matters

A grieving family does not want to navigate unnecessary complexity.

From an employee-benefit perspective, the claims process should therefore receive just as much attention as the premium.

Employers and scheme administrators should understand:

How a claim is submitted
Which documentation is required
Who assists the family
How queries are handled
How claims are tracked
How rejected or disputed claims are communicated

South Africa’s Policyholder Protection Rules require insurers to maintain appropriate claims-management processes and treat policyholders fairly.

For an organisation choosing a benefit provider, efficient administration and compassionate service are therefore important parts of the value proposition.

Data Quality Can Make or Break a Claim

Group benefits rely heavily on accurate employee and dependant information.

Problems can arise when:

An employee gets married but never updates their records
A dependant’s details are captured incorrectly
Employees leave but remain on outdated schedules
New employees aren’t added promptly
Personal details change
Extended family members aren’t correctly registered
Payroll and scheme data no longer match

These may look like minor administrative issues while everyone is alive and well.

At claim stage, they can become significant.

Regular reconciliation between HR, payroll and benefit administration should therefore form part of good scheme governance.

Don’t Assume Employees Understand Insurance Language

Insurance terminology is familiar to professionals working in the industry.

It may not be familiar to an employee encountering it for the first time.

Terms such as:

Waiting period
Beneficiary
Main member
Dependant
Accidental death benefit
Exclusion
Lapse
Sum assured

may be misunderstood.

Good communication translates policy wording into practical questions.

Instead of only saying:

“Extended family cover is available subject to scheme terms.”

also explain:

“If you want your parent to be covered, this is what you need to do.”

Clarity improves utilisation.

Financial Wellness Includes Knowing What You’re Paying For

South African households face significant financial pressure.

Every monthly premium competes with:

Food
Transport
Housing
Education
Debt repayments
Healthcare
Savings
Retirement contributions

This makes unnecessary duplication especially important.

An employee might willingly pay multiple funeral premiums because they believe each policy provides essential protection.

But they should make that decision knowingly.

Financial wellness is not simply about encouraging people to save more.

It is also about helping them understand the financial products they already have.

Employers Don’t Need to Give Personal Financial Advice

There is an important distinction.

An employer should not necessarily tell an employee:

“Cancel this policy and keep that one.”

Individual insurance decisions depend on personal circumstances and, where appropriate, regulated financial advice.

The employer’s role is different.

It can help employees understand:

What benefits the company provides
What those benefits cost
Who is covered
How claims work
Where employees can obtain more information
Where appropriate financial advice can be accessed

That alone can significantly improve financial awareness.

Onboarding Is an Opportunity

When employees join a company, they are often presented with a mountain of information.

Employment contracts.

Payroll forms.

Policies.

IT access.

Leave procedures.

Medical benefits.

Retirement funds.

Funeral cover can easily become one more document in the pack.

A better approach is to make employee benefits part of structured onboarding.

New employees should be shown:

Which benefits they receive
Which require contributions
Which dependants qualify
What actions the employee needs to take
Where to find documentation
Who to contact with questions

This is also the ideal time to encourage employees to compare their new group benefits with existing personal cover.

Life Events Should Trigger Benefit Reviews

Insurance needs change.

Employees should be encouraged to review their benefits after significant life events such as:

Marriage
Divorce
Birth or adoption of a child
Death of a dependant
A change in employment
A major salary change
Becoming responsible for parents or other relatives

Someone who selected their funeral cover five or ten years ago may have a completely different family structure today.

Benefits should evolve with people’s lives.

Employers Should Review Schemes Too

The same principle applies at organisational level.

A group funeral scheme that suited the workforce five years ago may not necessarily be the best structure today.

The workforce may have changed.

Employee demographics may be different.

Premiums may have changed.

Benefit expectations may have evolved.

Claims experience may reveal gaps.

Employees may be requesting broader family cover.

A periodic review can help determine whether the scheme remains:

Affordable
Competitive
Understandable
Easy to administer
Appropriate for the workforce
Supported by effective claims processes

The objective is not to change providers for the sake of change.

It is to ensure the benefit continues to serve its purpose.

The Bigger Conversation: Benefits Employees Actually Value

Organisations invest significant amounts in employee benefits.

Yet employees do not always appreciate the full value of what they receive.

Part of the solution is benefit design.

The other part is communication.

A funeral scheme can provide meaningful financial protection.

But employees need to understand that protection before it can influence their sense of financial security.

When employees know:

“My family has this cover.”

“This is how much it provides.”

“These people are included.”

“This is what I pay.”

“This is how my family would claim.”

the benefit becomes tangible.

A Timely Opportunity to Review

The current parliamentary focus on multiple funeral policies provides organisations with a useful prompt.

Not because employers need to wait for legislation before taking action.

But because it highlights a genuine financial-wellness issue.

Ask your workforce:

Do they know what funeral benefits they already have?

Do they understand who is covered?

Do their families know how to claim?

Are employees paying for additional policies without clearly understanding how they fit together?

And is the organisation’s own group scheme still appropriate for the workforce it serves?

Those are worthwhile questions regardless of how the proposed legislation ultimately develops.

How 98 Degrees Group Can Help

98 Degrees Group designs group funeral schemes for businesses, unions, institutions and communities, with structures tailored around the needs, size and budget of each group.

Our approach considers more than simply providing a policy.

We focus on creating practical, understandable benefit structures supported by effective administration and reliable claims processes.

Options can include:

Employee cover
Spouse and dependant cover
Extended family benefits
Accidental death benefits
Customised benefit structures

Because funeral cover should provide confidence before a claim — and support when a claim actually happens.

Is Your Group Funeral Scheme Clear, Competitive and Fit for Purpose?

If your organisation has not reviewed its funeral benefits recently, now may be a good time to look again.

Speak to 98 Degrees Group about designing or reviewing a group funeral scheme that provides meaningful financial protection for your employees and their families.

Good benefits aren’t only provided. They’re understood.