Stock insurance vs funeral cover: which one actually protects your family?
Almost every spaza owner we speak to has funeral cover. Very few have stock cover. If something goes wrong, the two do completely different things.
Funeral cover is the most common insurance in South Africa. It's cheap, easy to understand, and pays out when someone dies. But it only helps once. If your shop burns down or gets looted, funeral cover does nothing.
What each one actually does
- Funeral cover. Pays a lump sum when a covered person dies. Typically R5 000 to R50 000. Used to pay for the funeral and short-term family needs.
- Stock insurance. Replaces the stock in your shop when it's stolen, burnt, flooded, or damaged in riots. Keeps the income coming in.
Where families actually get stuck
The shop is often the main source of income for the whole household. When it goes, funeral cover pays for a funeral but nothing replaces the R50 000 or R100 000 of stock on the shelves. Rent still needs to be paid. School fees still come up. Suppliers still want their money.
Stock insurance keeps the shop running. That is what protects the family in the long run.
Cost comparison
A basic funeral policy for a family of four costs around R150 to R300 a month. Stock cover with Vuleka Insure is R199 a month and replaces up to R50 000 of stock. For roughly the same money you can protect both.
You need both, not one or the other
Funeral cover handles the day someone dies. Stock cover handles every other day the shop is at risk. If you have to choose one to add next, and you already have funeral cover, add stock insurance.