By: Natasha Archary
To die so another can live comfortably, Berniece Hieckmann, Executive: Strategy, Business Transformation & Business Optimisation at Metropolitan joins Kaya Biz to discuss why insurers need to rethink the red tape.
For most, funeral and life insurance is seen as a wealth creator within the South African context, and the culture of family members benefitting after the passing of a loved one by cashing in on either the life or funeral policies is deeply engrained within the African psyche.
Berniece shares that funeral cover is the preferred and often more affordable insurance option for most South African families, compared to life insurance.
“There’s two forces at play, traditionally funeral cover was designed to payout and help people ensure that their loved ones have dignity in death.
Dignity in death in culturally defined, we have many different cultures in South Africa, and each one will have its own way of giving their loved one a dignified final send off. But, I think the two forces at play are: 1. Massive economic hardship, and 2. People are now looking at insurance as a way to equalize and give their family a leg up after death.
We are however, starting to see a gradual relaxing of the opulence of funerals as the generational line is getting younger and younger.
Whereas before funerals were really opulent and now people are more pragmatic as more millenials and Gen Z’s take care of their parents, which does leave a little bit of extra money for that family for whatever they may need.”
Yes, someone has died, but the needs of those who are left behind are still very much alive, and this is why insurers should rethink the red tape.
In South Africa, there are 4 ways for those living on the breadline to access a decent payout after the death of a loved one, which includes:
- Saving
- Gambling
- Borrowing, or
- Using the payout from an insurance policy
Listen to the conversation on Kaya Biz:
Also read: Margaret Arnolds has been sworn in as the new Joburg Speaker
