Standard Bank: More young people seeing the benefits of investing in funeral cover

Johannesburg - Standard Bank Insurance Brokers say they have started seeing a significant increase in new policies taken up by young people. The broker business says that in 2023, 20% of new Flexible Funeral Plan policies were taken up by people aged between 21 and 30, as compared to 2020 and 2021, where only 12% of their new client base was accounted for by this demographic.

Furthermore, the data shows that at least a quarter of all their Flexible Funeral Plan policies are taken up by people between the ages 26 and 35.

Sonja Oosthuizen, Head, Life Insurance Products at Standard Bank Insurance Brokers says, “The numbers are an indicator that young people are taking responsibility for their own insurance needs. What’s also interesting to note, is that these clients are also preparing for their immediate as well as – in some cases – extended family needs.”

A tragic event like losing a loved one is emotionally draining but can be devasting when there aren’t enough funds available to give family members a dignified send off.

Oosthuizen says tragic life-threatening events like the 2020 Covid-19 pandemic and the recent floods in Kwa-Zulu Natal and the Western Cape, have grown awareness of personal risk and highlighted the value of being better prepared for life’s uncertainties, specifically the need for both funeral and life insurance.

“Like never before, families are becoming proactive in funeral planning as part of their risk management mechanisms to talk openly about the potential death and funerals of loved ones, particularly concerning the death of a breadwinner,” she adds.

Additionally, the broker business also revealed that they are seeing an increase in the number of Flexible Funeral Plan clients who are choosing benefits that cover needs that go far beyond the funeral. Some, in fact, being benefits that policy holders can enjoy while still alive, like the cash back benefit.

“Since its introduction, we’ve seen a high uptake of the cash back benefit, a benefit that pays back 10% of all paid premiums every five years from the time of selecting the benefit,” says Oosthuizen. “Consumers in South Africa are under considerable financial pressure. The insurance industry has had to evolve with the socio-economic landscape to meet the needs of clients and this means offering benefits that go beyond covering the cost of a funeral.”

While the integrated and complex macro environment is beyond anyone’s control, consumers can reach out to an insurance broker who can guide through flexible solutions that may protect them against harsh economic realities.

It is advisable for individuals to speak to their financial advisors or insurance broker to seek the best possible tailored solutions for their needs.