The funeral premiums are up to date. The family knows who to call. There is money set aside for a dignified goodbye. That is meaningful preparation. Without it, relatives may have to borrow or find money at short notice, while also coming to terms with their loss.
But being prepared for the funeral still leaves an important question: how will the family manage financially afterwards?
The Capital Legacy Estate Readiness Index™ 2026 found that 74% of respondents’ deceased loved ones had funeral cover. Just 41% had a valid will, and only 20% had cover for the legal costs of dying.
The research surveyed 1 000 South Africans aged 25 to 75 who had lost a loved one in the previous five years. The findings raise a question that every family should consider: What, exactly, have we prepared for?
Funeral cover can provide valuable help at a very difficult time. Depending on the policy, a cash payout could also help with expenses beyond the funeral. But once it has been spent on the burial or cremation, transport or taking care of visiting relatives, that money is gone. “Families often put great care into making sure a loved one gets a dignified farewell. Often, the same cannot be said of plans put in place for the people left behind. A funeral policy, a will, and cover for unavoidable estate costs each do an important, but different, job. The important conversation to have is about how they work together, who receives the money and what needs to be paid. A family should get this clarity while there is still time to plan,” advises Ken Newport, national manager of succession planning at Capital Legacy.
A funeral policy claim and the administration of a deceased estate follow very different processes. Receiving an insurance payout does not mean a home can immediately be transferred, or an inheritance is ready to distribute.
A valid will records how you want your assets distributed and lets you nominate an executor to administer your estate. For parents, a will is also a vital opportunity to make arrangements for the care of minor children and the management of their inheritance. However, a will does not provide the money to meet the obligations of your estate.
That is where another often-overlooked bit of preparation comes in. Executor fees, conveyancing fees, testamentary trust fees and more could be covered by estate-cost insurance, depending on the selected policy and its terms. This could help preserve more of your legacy for your beneficiaries, although debts and taxes would have to be covered separately.
The practical next step is to compare your funeral policy, your will and any life or estate-cost cover you might have. What does each one pay for? How much does it pay? Who is listed as beneficiaries? Who will make the actual payments? How will the family meet everyday expenses while estate administration runs its course?
These questions can reveal gaps in your estate plan, or highlight that money has been allocated to the same thing twice, while other requirements may have been overlooked. A financial adviser or estate specialist can make sense of it all and put together holistic estate planning that encompasses the whole range of responsibilities that must be taken care of.
Capital Legacy offers free will drafting and an optional Legacy Protection Plan® that can provide cover for unavoidable estate costs. Its free online Estate Readiness Check can help you identify areas to discuss with your financial adviser.
Gather your documents and arrange that conversation with your financial adviser. If you do not have one, contact Capital Legacy for assistance.
The aim is to get to a point where you know what will happen after the funeral or memorial service, as clearly as you know what will happen on the day.
