Policy stacking is widespread, well-intentioned, and may be costing families more than they realise.
Three quarters of South African households hold a funeral policy. That number tells one story. What lies beneath it tells another.
According to a Bureau of Market Research report conducted in conjunction with Metropolitan, around 75% of South African households hold funeral cover, a penetration rate that dwarfs other insurance products. By comparison, only 25% of households have at least one family member contributing to a life insurance policy. The 2024 Finscope Consumer Survey, released in October 2025, found that a high number of South Africans with funeral cover hold more than one policy, with a significant number viewing it as a savings instrument, because the money paid out doesn’t have to go entirely to funeral expenses.
The result is a quiet but widespread behaviour known as policy stacking: taking out two, three, sometimes four funeral policies across different insurers, with the intention of leaving behind a larger payout for the family.
It is a well intentioned strategy. It is also one with real limitations.
Despite funeral policies having a cap of around R100,000 per insurer, there is nothing stopping someone from taking out policies with multiple providers. Each policy comes with its own premium and its own set of fees. Over 10 or 20 years, that adds up.
“There are a few details that some consumers miss when it comes to approaching funeral cover in this manner,” says Jay Malatji, Provincial General Manager for Northwest, Limpopo, and Gauteng at Metropolitan. “And for us in the financial planning space, it is a concerning trend because it moves funeral cover beyond its original purpose. It is now no longer just about covering burial costs, but about trying to build some form of financial security in the absence of other options.”
Even with multiple policies, the payout remains capped per policy and is designed for short-term costs. Funeral cover is built to handle the immediate needs around death, not the ongoing financial needs of a household.
Waiting periods are one of the most overlooked issues. Because policies are often taken out at different times, each comes with its own terms.
“What looks like multiple layers of protection on paper does not always translate into immediate access to money when it is needed most,” says Malatji.
Then there is the cost over time. Premiums do not always stay the same. As policyholders age, increases can arrive across every policy they hold simultaneously, and what once felt manageable can become difficult to sustain.
“When money is tight, people are forced to prioritise, and not every policy survives,” says Malatji. “Once a policy lapses, the premiums that have already been paid are not recovered. Years of contributions can simply fall away.”
“No matter how many funeral policies are stacked, they cannot fully replicate the kind of long term protection that life cover provides.” – Jay Malatji, Provincial General Manager, Metropolitan
The money going into multiple funeral policies is money not being used elsewhere, money that could have gone toward life cover, savings, or reducing debt.
“Funeral cover is often the easiest entry point into financial protection,” Malatji acknowledges. “It does not require medical tests, premiums are generally lower, and the product is easier to understand. However, the challenge is that funeral cover has its limits, and financial planning can assist consumers in finding better solutions for their needs.”
Life cover is structured differently. It is designed to replace income, settle debt, and support a family over time, not just cover the cost of a funeral. And increasingly, providers have developed entry level life cover products that do not require intensive underwriting or blood tests, offering an option for consumers who have historically found the process of obtaining life cover prohibitive.
Financial freedom is not built on how much money is paid out when you die. It is built on how well your family is able to continue living without you.
For many South Africans, the shift may not be about having more funeral cover. It may be about having the right kind of cover, and understanding the difference before years of premiums have already been paid.