Black South Africans Need to Start Taking Life Policies — Here’s Why It Matters More Than You Think
Funeral policies are deeply woven into many families’ financial habits, but here’s the reality: funeral cover alone isn’t enough if you want to own property. Most banks in South Africa will not approve your home loan unless you have a proper life insurance policy in place.
That’s right. You might have the income, the deposit, and the credit score — but without life cover, your bond could still be rejected.
Why So Few Black South Africans Have Life Insurance
There are real, understandable reasons — rooted in history, culture, and access.
Funeral culture is dominant. From a young age many are taught to prioritise burial dignity, so funeral cover becomes the default.
Exclusion under apartheid. Life insurance was often inaccessible to Black South Africans. That lack of exposure means many families never discuss or teach it.
Financial education gaps. Many don’t know how life insurance works, what it protects, or why it’s necessary.
Distrust or misunderstanding. Life policies are seen as expensive, risky, or complicated. Meanwhile, funeral cover “feels safer.”
The result? A huge gap in meaningful coverage.
Funeral Cover vs Life Policy — What You Need to Know
Funeral Cover:
Covers burial and funeral costs
Usually small amounts (10,000 – 50,000 rands or similar)
Quick payout after death
Doesn’t cover your home, debts, or loss of income
Only works if you’re up to date with premiums
Life Policy:
Pays out a substantial amount (often 500,000 rands to several million)
Can be used to settle your home loan if you pass away
Protects your family’s financial future
Mandatory for bond approval by banks
Much cheaper if you take it out early
The Shocking Statistic — Only ~10% of Black South Africans Have Life Cover
Recent data from the insurance industry shows:
Only ~10% of Black South Africans have full life insurance
In contrast, 60%+ hold funeral cover
That wide gap highlights the deep cultural, educational, and economic divide. While funeral cover helps with burial costs, it does nothing to protect your home or your family’s future.
Banks Won’t Approve Your Bond Without Life Cover
To get a home loan, most lenders will require:
A clean credit check
Proof of income
A down payment or subsidy (if applicable)
A valid life insurance certificate
This holds whether you’re applying for a standard bond, a 100% home loan, or accessing First Home Finance (FLISP) subsidies. Banks will refuse or force you to take life cover at a higher cost — unless you already have a policy.
Start Early — Avoid Paying More Later
Waiting until your late 30s or 40s to get life insurance can backfire:
Monthly premiums go up with age
You may be denied if you develop health issues
You could miss out on the best, lowest rates
But if you lock in a policy in your 20s or early 30s:
You get lower premiums
Fewer health risks or exclusions
Security for your future bond application
What You Should Do Right Now
Get a life policy today — even a basic one
Ensure the coverage matches your future bond amount
Keep your funeral cover, but don’t rely on it alone
Consult a qualified broker or advisor who understands both property & insurance
Ready to Start the Home Ownership Journey?
We’ve helped numerous South Africans secure bonds by combining subsidy, financing, and insurance. Now we want to help you.
✅ Use our Free Pre‑Qualification Form to check your eligibility:
👉 Pre‑Qualification Form
✅ Need help finding an affordable life policy?
Email info@thepropertyguys.org or click the WhatsApp chat icon on our site — we’ll point you in the right direction.
Final Thoughts — Change Starts Today
Culture and history have shaped our financial habits, but they don’t have to define our future. Funeral cover is good — but it won’t secure your home or protect your family long-term.
Your home is a foundation for your legacy. Don’t let the absence of life cover undermine that.
Start now. Get your policy. Buy your home. Build your future.
“The best time to plant a tree was 20 years ago. The second best time is now.”
— It’s never too late to get life cover. But the sooner you do, the better.
#LifeCoverMatters #BlackWealthMatters #HomeLoanTips #SouthAfricaProperty #ThePropertyGuys
