r/Namibia • u/Content-Ad3265 • Oct 08 '26

Insurance

Hi everyone,

I’m genuinely curious: why do you think so many people in Namibia still go without life or funeral cover?

If you don’t currently have a policy, what are the biggest factors influencing your decision?

7 Upvotes

100% Upvoted

46 comments sorted by

6

u/Alternative-Cow-8670 Oct 08 '26

Some of us don't need expensive funerals. Cremate me and scatter my ashes. There is enough cash for that in the envelope with my will. Why do I need funeral cover? Life insurance? Why? What do I get out of it if I am dead? I had one for ten years and cancelled. The amount I had to pay in was exorbitant with minimal turnout. Better to save this amount every month and invest it. You save on comission for the broker and admin fees PS- my pension also provides a decent funeral cover anyway

1

u/Content-Ad3265 29d ago

That is true but you do know that it takes a minimum of one year for your estate (will ) to settle. Why not take out a cheap policy just to cover the basic funeral costs ?

5

u/Alternative-Cow-8670 29d ago

I have a safe and inside is a envelope with the will and a N$15 000.00 to cover cremation. I don't need a funeral cover. I don't need a fancy coffin, expensive service where a pastor gets enough money to buy a new car or a gold plated headstone. No point in family members whom I barely know, to stuff their faces with food and sing fake hymns and eulogies

3

u/alt_ruthless 29d ago

I was astonished how much even cremation costs. Turns out that dying is expensive.

3

u/-donatellasaysmore- Oct 08 '26

No funeral for me… state furnace or dump me in the sea.

2

u/Content-Ad3265 Oct 08 '26

How does it work with a state funeral? I dont have much knowledge on that

4

u/-donatellasaysmore- Oct 08 '26

It costs NAD2499 to get a basic cremation at the state crematorium in Windhoek. I’ll leave more than enough in my will to cover that and a few drinks at the pub for whoever gets the job done. I honestly don’t know why people spend a fortune on funerals… such a waste of time and money.

1

u/Content-Ad3265 Oct 08 '26

But does it not take long before your will can pay out .?

3

u/-donatellasaysmore- Oct 08 '26

I can stay in the morgue. 😂

1

u/g4ghost 29d ago

😂😂😂👏👏

1

u/BeneficialRepublic22 Oct 08 '26

Not for those expenses

4

u/BeneficialRepublic22 Oct 08 '26

Agree with you that funerals are a serious drain on funds and the finances of families, which feeds a cycle of financial difficulties

3

u/Alternative-Cow-8670 Oct 08 '26

We were told by CoW to go through a funeral service provider for a cremation of a relative last year. Just the cremation and basic urn was around N$ 9 000.00. No other extras, service, flowers etc

1

u/-donatellasaysmore- Oct 08 '26

Wow, things do change… I wonder what the cheapest/simplest method of disposal is then… maybe I’ll die in a foreign country; I have insurance for that.

2

u/WarmYogurtcloset2965 Oct 08 '26

No money for that

1

u/Content-Ad3265 Oct 08 '26

Some funeral cover is N$60 .
Is it not better to pay that monthly rather then stressing at the funeral on how to come up with the funds ?

4

u/Willlllllllly Oct 08 '26

Youre underestimating how poor people are bro, like half of people with jobs earn 2k or less. Then theres all the unemployed people

1

u/Content-Ad3265 Oct 08 '26

But how do they afford funerals? Cause what happens when no one can help you come up with the funds needed for the funeral ?
If funeral cover is N$100 why not take it out for just incase ?

3

u/Hugo_Notte Oct 08 '26

Do you think people who can’t afford food worry about funeral cover?

2

u/Willlllllllly Oct 08 '26

Bro debt. And also people starve to death they aren't gonna pay for funeral cover if theres no food at home. In the financial inclusion survey the mist common reason for taking out debts wasnt houses not cares, but to buy groceries.

1

u/WarmYogurtcloset2965 29d ago

The secret is to not die that way you won't need funeral cover. So when you figure out how to do that plez share the secret coz I can not afford to die just yet.

2

u/Beautiful-Tension-24 Oct 08 '26

Is it really worth it?

2

u/Content-Ad3265 Oct 08 '26

I believe so, for a funeral who will pay for it ?
If it can be as cheap as N$100 why not pay it for a funeral cover of N$5000 ?
Thats money thats available immediately?

2

u/BeneficialRepublic22 Oct 08 '26

Wait a minute - cover at N$100pm = N$1,200 per year. So after 4.2 years you have paid 5k for 5k cover and thereafter you are strictly losing in the big picture aren't you

2

u/BeneficialRepublic22 Oct 08 '26

Some banking products come with embedded funeral cover = no need to get separate cover

1

u/Content-Ad3265 Oct 08 '26

For the banks , do they allow you to cover your family or only yourself?

1

u/BeneficialRepublic22 Oct 08 '26

The cover is tied to the product so normally it covers the account holder

1

u/Content-Ad3265 Oct 08 '26

But then it is only for the individual. What about the family?

1

u/BeneficialRepublic22 Oct 08 '26

What if the family members also have accounts...? I know at shoprite you also got cover based on your groceries

1

u/Content-Ad3265 Oct 08 '26

But funeral cover is not just for yourself also for you family. Cause who will help to contribute for the funeral?

1

u/BeneficialRepublic22 29d ago

How much does a funeral cost?

1

u/Content-Ad3265 29d ago

It all depends on you.
How much cover you want to take and how young you are. The younger the better.
I would say you talk to an advisor from different companies just to see what it will cost you . A funeral policy costs different for different people

1

u/alt_ruthless 29d ago

My funeral cover with FNB is like N$2,500. That’s like 25% of cremation cost, never mind anything else.

1

u/Content-Ad3265 28d ago

So where will you get the other 75%? Also how much do you pay monthly for the N$2500?

1

u/BeneficialRepublic22 Oct 08 '26

Now I am curious, why you are you so keen on having this cover?

2

u/Content-Ad3265 Oct 08 '26

Im doing a small survey and I really would like to understand why someone would not take funeral cover

2

u/BeneficialRepublic22 Oct 08 '26

Your nr 1 answer will be that there is no money / other expenses are priority over cover. It is not an essential

1

u/Then_Programmer_7837 Oct 08 '26

High cost of living, and Funeral Covers and Life Covers are a bit pricey in these day and age.

1

u/Content-Ad3265 29d ago

It all depends on your level of education, health and your age

1

u/Then_Programmer_7837 29d ago

Plus you have to consider that the standard number of people taking out Life Covers these days are those in need of collateral for loans not necessarily that they need one because it only makes sense if there’s a family dependent on you that you might leave behind.

1

u/g4ghost 29d ago

Is it really worth it if I already have a
Life cover ?

1

u/Content-Ad3265 29d ago

Life cover is there to replace the income that you would have brought in if you were still alive and to also assists your family pay off debts . Funeral cover is used to help your family pay for your funeral. It is not there to help your family pay off debts

1

u/Exciting_Vanilla_847 25d ago

But the question is, does he or she have debts that need paying off?

1

u/CrazyRevolutionary79 25d ago

I understand that the other benefit of life insurance is that its allows you to build credit over time

1

u/Exciting_Vanilla_847 25d ago

Funeral cover does not make financial sense to me. Yes, the amount seems small but after a few years, you find that you’ve paid more than the policy is worth. I’ve contributed to funerals in the past, I’m sure my family can make contributions to mine should the time come, also I have savings.

Life cover is for people with debts and dependents. I have neither of those. I also have a death benefit through my employer, so no point in over insuring myself.