Why South African Youth Prioritise Funeral Cover

When many young South Africans enter the job market, they do so with more than their own dreams in tow. Their families have often made significant sacrifices to get them there, with the unspoken expectation that, once employed, they’ll help uplift the household financially.

For these young professionals, supporting family isn’t a burden, it’s a source of pride. That pride increasingly shows in how they buy insurance, especially funeral cover.

Standard Bank data shows that over a quarter of Flexi Funeral policyholders are under 35, and the number is growing fast. Between 2021 and 2024, uptake rose by 51%, with a 27% spike in 2023 and a further 17.7% in 2024.

Many under-35s hold an average of three policies, paying about R123 each – roughly R369 a month.

More than just numbers – a statement of responsibility

“Young South Africans carry a deep sense of responsibility, not just for themselves, but for older generations,” says Shaka Zwane, Head of Insurance & Fiduciary at Standard Bank SA. “For many, funeral cover is a way to support family and earn respect. It’s become a rite of passage into adulthood – a way of saying, ‘I’ve got you’ to their mothers, grandmothers, and communities.”

Unlike life insurance, which pays out on the policyholder’s death, funeral cover addresses immediate needs, helping young people pay for the burials of parents, grandparents, and extended family. In South Africa, where funerals are culturally vital and can cost tens of thousands, this support is crucial.

Standard Bank data shows this clearly: 53% of funeral claims by under-35s are for extended family, 25% for parents, and only 3% for spouses, highlighting that many young policyholders are unmarried but deeply connected to family.

“Funeral cover isn’t just financial,” says Zwane. “In many communities, a proper burial is sacred; it’s a way to honour the departed and preserve family dignity.”

Women lead the way, with metros driving the numbers

Young women are at the forefront of this shift. They are far more likely than men to take up Standard Bank’s Flexi Funeral cover, often for large family networks. Many act as ‘extended family caregivers’, insuring not just parents and siblings, but cousins, aunts, uncles, and grandparents. While most under-35 policies cover two lives, those covering eight or more are mostly taken out by women.

The trend is strongest in urban metros in KwaZulu-Natal and Gauteng, where young people move for work but remain closely tied to their roots.

Funeral cover over life insurance, a telling priority

Funeral insurance is far more popular among young people than life cover. Just 16% of Standard Bank’s life insurance clients are under 35, compared to 26% with funeral policies.

“This prioritisation speaks volumes,” says Zwane. “Young people are choosing to protect others first, stepping into adulthood with a focus on family, not just their own needs.”

In a tough economy, Zwane says, this is a practical strategy. A family death can push young breadwinners into debt, with funeral costs often falling on their shoulders. But he cautions against neglecting life cover:

“While funeral cover meets immediate needs, life insurance ensures long-term security for those who depend on you. Young people need both to support their families now, and to protect them in the future.”