Lee Bromfield | The vital role of funeral and life insurance

South Africa has more than 1.5 million FNB funeral insurance policies covering over 4.6 million lives, which highlights that families are proactively securing cover for the unexpected loss of a loved one.

But true financial security requires a broader approach that integrates various components, including - at the very least - funeral cover and some form of life insurance, backed by a reliable insurance provider that appreciates the importance of good financial advice. Together, these three elements form the cornerstones of a financial foundation that not only meets immediate needs for people and families from all income groups, but also safeguards the long-term financial stability for their families and loved ones.

Of course, there is more to funeral cover than simply having a policy. The effectiveness of such insurance – and indeed life insurance cover - needs to be measured by how quickly funds are made available to bereaved families. FNB Insure has long recognised this fact and prioritises fast and proactive claims processing for its policyholders. Over 80% of claims on FNB funeral policies are settled within 24 hours, providing immediate relief and ensuring that families can focus on mourning rather than financial uncertainty.

The vital role of proactive claims processing in financial security

A non-negotiable requirement in the modern life and funeral cover equation that cannot be overlooked is proactive claims identification. This ensures that policy benefits reach surviving families without unnecessary delays and the financial stress that accompanies them. This is especially true in the situation (which happens more often than one would think) that beneficiaries are unaware that their deceased loved one had an active life or funeral policy. This means that valuable financial support can go unclaimed, leaving families vulnerable.

To address this, FNB Insure is one of a few insurers in South Africa that proactively checks life and funeral policies against Department of Home Affairs records to identify policyholders that passed away and initiate the claims process – often before the beneficiaries even know they are due a payout. This approach has helped reduce waiting periods and ensured that funds reach beneficiaries when they need them most, thereby reducing financial distress, preventing unnecessary hardship, and strengthening the public’s trust in insurance as a tool for financial security.

The bottom line is that South African families need real financial security, and that requires more than just a funeral policy or life cover – it demands a comprehensive, proactive approach from life insurance providers. Insurance cannot just be a reactive safety net; it has to be about true financial security and empowerment

FNB Insure data highlights the importance of customised life insurance solutions that provide more than just a lump sum payout. As a value-driven offering that reimagines insurance bundling, FNB launched the Life & Legacy Plan in 2024 to secure a future where families and legacies are protected. Offering up to R1.5 million in cover, an FNB Will, and coverage for executor fees, it goes beyond traditional insurance to provide holistic financial security and peace of mind for loved ones. The FNB Life & Legacy Plan also includes a R30 000 funeral benefit paid out within 24 hours of receiving a valid claim, and a burial repatriation benefit for transportation to one’s final resting place within the borders of South Africa, amongst other benefits. This new approach to financial protection ensures our offering helps to bridge the financial gap for families, making it a more holistic and accessible solution for all.

By integrating funeral cover, dynamic life insurance and proactive claims identification, insurers in this country can, and must, help South Africans move from a mindset where they are merely protecting against loss to one in which they are leveraging insurance to actively secure their families’ futures.

*Lee Bromfield is CEO at FNB Insure.