A few weeks ago, I was sitting with a friend over coffee when she casually mentioned how her uncle’s funeral had cost the family almost as much as a small car. I nearly spilled my cappuccino. Funerals, in my mind, were expensive, sure—but not that expensive. That conversation stuck with me, because it’s the kind of expense you don’t think about until it lands on your doorstep like a very unwanted guest.
And then, as fate would have it, I started digging into OUTsurance’s funeral cover and how it ties into their life insurance products. Turns out, there’s a lot more to this pairing than the usual “just add it on for peace of mind” line you see in ads. But before we dive into why these two products work so well together—or at least appear to—let’s talk about why this conversation even matters.
Why Funeral Cover Even Exists (and Why It’s Still Relevant)
When you think about life insurance, the first thing that comes to mind is usually the big picture: replacing income, paying off debts, ensuring your family can keep the house. It’s about security for the long haul. Funeral cover, on the other hand, is like the quick-response unit of financial planning. It’s the money that gets to your family fast—really fast—so they can cover immediate costs like the coffin, venue, transport, and that mountain of catering bills that seem to come with every South African funeral.
Some might argue, “If I have life insurance, why do I need funeral cover?” Fair point. But here’s where timing sneaks in as the big differentiator. Life insurance payouts can take weeks—sometimes longer—before they land in your account. Funeral costs don’t wait for administrative processes or signatures. They’re due immediately, and families often scramble to borrow money or sell things if they don’t have liquidity.
So, funeral cover is not about if you’ll get paid—it’s about when. That’s why OUTsurance (and honestly, many insurers) position these products as complementary rather than redundant. But does it always make sense? Well, that’s a question worth poking at.
OUTsurance’s Funeral Cover in Plain Language
OUTsurance is famous for its cash OUTbonus ads, but their funeral cover is less about quirky marketing and more about practicality. The basics are straightforward: it’s a policy that pays out quickly—usually within 24 to 48 hours of a valid claim—so the family can manage funeral expenses without panic.
Here’s what typically stands out with their funeral cover:
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Cover for individuals, couples, or families: You can insure yourself, your spouse, and even extended family members (yes, your beloved but unpredictable uncle can be covered too).
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Affordable premiums: These are generally lower than life insurance premiums because the sums assured are smaller. We’re talking R10,000 to R100,000 in most cases.
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Fast payout promise: OUTsurance leans hard on the quick payout guarantee, which honestly is the entire point of funeral cover.
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Optional extras: Some plans include grocery or unveiling benefits, which feels practical if you’ve ever attended a post-funeral gathering.
But the big question remains: how does it complement life insurance without feeling like you’re just paying twice for the same peace of mind?
Life Insurance vs. Funeral Cover: Different Tools, Different Jobs
Life insurance is the marathon runner; funeral cover is the sprinter. One handles the long-term financial health of your family. The other jumps in immediately to prevent chaos in the first few days.
Imagine this scenario: You’ve taken out a R2 million life policy with OUTsurance. When you pass away, that payout will likely settle your home loan, cover your children’s education, and maybe leave some extra for your spouse. But that money doesn’t arrive the next day. It’s tied up in paperwork, claims validation, and legal processes.
Meanwhile, your family needs R40,000 right now for the funeral service, flowers, and catering. The funeral home is not going to wait for your life policy payout. In fact, they’re probably demanding a deposit before anything moves forward. That’s where funeral cover plays its role.
Is it necessary if you’re good at saving? Maybe not. If you’re disciplined and have R50,000 sitting in an accessible account earmarked for emergencies, you might skip funeral cover entirely. But let’s be honest—most people don’t. And even if they do, few want to wipe out their emergency fund in one go.
How OUTsurance Bundles the Concept
Here’s something I like about OUTsurance—they position funeral cover not as an upsell but as a complement. When you browse their site, they make it clear that these are separate products but can work hand-in-hand. Some insurers aggressively push bundled packages where you don’t have much flexibility; OUTsurance appears to give more choice.
That said, there’s a little marketing sleight of hand here. When they say, “cover from just R89 per month,” it sounds incredibly cheap—until you check what that actually buys you. It’s usually the lowest level of cover, which might not be enough for an elaborate funeral. To be fair, this isn’t unique to OUTsurance; it’s standard practice in the industry. But it’s worth noting so you’re not caught off guard.
My Personal Take (and a Little Family Story)
When my cousin passed away a few years ago, the family went into a tailspin. He didn’t have funeral cover, just life insurance. The payout from his life policy eventually came through—but not before we had maxed out credit cards and borrowed from every relative in the WhatsApp group. The stress during those days was unbearable, and honestly, it overshadowed the grieving process.
That experience changed the way I look at these products. Funeral cover is not glamorous. It doesn’t carry the weight of “legacy” planning like life insurance does. But in those first raw, chaotic days after a death, it can be a lifesaver—literally keeping the wheels turning while the bigger sums are still pending.
The Critiques (Because Nothing Is Perfect)
Of course, funeral cover isn’t without criticism. Some financial advisors argue it’s an unnecessary expense if you already have strong savings habits. Why pay premiums for years when you could just set aside that money yourself? A fair argument. Over a decade, you could easily pay more in premiums than the payout if you never claim.
Another point: the emotional marketing. Insurers know that talking about death tugs on heartstrings, so ads often lean on fear. It’s worth approaching the decision with logic, not just emotion. Ask yourself: Do I have the liquidity to cover a funeral without stress? If the answer is yes, maybe funeral cover isn’t essential.
So, Do They Really Complement Each Other?
In my view, yes—but with a caveat. Funeral cover fills a timing gap that life insurance simply can’t. It’s a short-term solution for immediate expenses, while life insurance is a long-term safety net. Together, they create a smoother experience for families during an already brutal time.
But complement doesn’t mean compulsory. If your financial situation is rock-solid and you keep emergency funds handy, you may decide funeral cover isn’t worth it. For most people, though, it offers peace of mind without breaking the bank.
Final Thoughts (Without the Sales Pitch)
Funeral cover isn’t about death—it’s about dignity, timing, and reducing stress for the people you love. OUTsurance seems to understand that, and their approach reflects a balance between flexibility and practicality. Could they be more transparent about real costs beyond the “from R89” tagline? Probably. Could they explain better when funeral cover might be overkill? Definitely.
At the end of the day, the decision isn’t about whether OUTsurance (or any insurer) offers the “best” funeral cover. It’s about whether you want to outsource that risk or carry it yourself.
If you’re like me and the thought of scrambling for money during an emotional storm makes your stomach churn, a small funeral policy—paired with life cover—may be a trade-off worth making. If not, well, maybe keep that R50,000 emergency fund untouched and make a note for the family. Just don’t forget to tell them where you hid it.
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