Death is an inevitable natural occurrence, and the dead needs a safe and peaceful place to go to rest, therefore. Suppose you’re thinking of making money out of the high rate of death in South Africa. In that case, this article will guide you by providing detailed information on how you can start a funeral insurance business in South Africa.
So, we implore you to keep reading because the chapters that follow in this article contains the necessary information that can help make your funeral insurance business dream a reality.
The funeral insurance business has been lucrative and will always be since funeral ceremonies are the only way to say farewell to the deceased and a necessity to the deceased’s family.
Even though the business comes with an overwhelming profit, the startup cost involved is way out of imagination. Before embarking on your business journey, ensure that you are financially grounded.
The chapters that follow in this guide are detailed information on how you can start, run, manage, and make your funeral insurance business successful in South Africa.
Table of Contents
What You Need To Start A Funeral Insurance Business In South Africa
To be able to run a funeral insurance business in South Africa, the following requirements have to be met:
1. Acquire Business Knowledge: it is not worth it investing in a business you have no knowledge and skill about. Therefore, it will be advisable to acquire training in the funeral insurance business before you take the necessary steps to start yours
2. Business Plan: draw a business plan to takes into consideration every aspect of your business. Know that your business plan controls the direction of your business. Therefore choose a plan to is easy to implement and falls within your financial strength
3. Market Research: conduct market research into the funeral insurance business. This will help you know where the business is profitable, challenges, and other conditions that affect the Market positively or negatively
4. Target Market: know whom your business is being set up for. Are you targeting the working, middle/average earning, or rich class of the South Africa population?
Getting to know your target market will help you understand the type of services the people can afford and what they want, then you can decide on what you can offer the funeral insurance market.
5. Location: make a good choice of business location that has good marketing potentials and can support the type of funeral insurance business you operates
6. Leasing Property: acquire a leasing property for your business. The property can be used as a graveyard or cremation ground with a business office for paper works
7. Business Name: choose a catchy business name that is easy to memorize and suits the funeral insurance business
8. Business Registration: register your business with the Companies and Intellectual Property Commission (CIPC) for legal certification
Register with the South African Revenue Services (SARS) for taxation
Register with the Employees Tax (PAYE)
Register with Value-Added Tax (VAT) and
Unemployment Insurance Fund (UIF)
9. Certificate of Competence: apply for a certification of competence, and a publication has to be made in two different newspapers that circulate in the area of your business before you submit your certificate of competence for approval
10. Insurance Providers Documentation: learn how to provide the following insurance documentation for the deceased family:
Grave purchasing (if you don’t have a graveyard)
Identity document cancellation
Church and minister arrangement
Acquiring health department documents
11. Staffing: employ good staff who have experience in handling the funeral insurance business
12. Staff Payment Policy: strategize a good payment policy for your staff to keep them on their toes for your business operation
13. Advertisement: advertisement plays a vital role in marketing a funeral insurance business, this is because of the high level of competition from the successful players in the business, therefore making your business known to the public with the kind of affordable services you offer will win you customers to help make a fair share out of the Market
How Much Does It Cost To Start A Funeral Insurance Business In South Africa
The funeral insurance business is capital intensive, and the startup cost involves ranges from R1.5 – 10 million.
Is The Funeral Insurance Business Profitable In South Africa
The cost involved in setting up the funeral insurance business speaks a lot about the profit of the business, “you invest more, you earn more.”
Funeral insurance companies charge between the range of R20,000 – 150,000 for their funeral services, and in 1 – 2 years, you should be recovering your invested money fully.
Best Places To Start A Funeral Insurance Business In South Africa
The funeral insurance business can be operated at every corner of South Africa but to be successful in the business, consider the following:
1. Working-class communities
2. Rich communities
3. Urban areas
4. Cities with high foreign culture adoption
How To Make The Funeral Insurance Business Successful In South Africa
Below are some of the factors to consider to help plan, run and manage a successful funeral insurance business in South Africa:
1. Making the right choice of business location
2. Affordable pricing
3. Effective services
4. Choosing the right staff for the business
5. Delivering on time
6. Good customer relationship
7. Good customer care
8. A good marketing strategy
Challenges In The Funeral Insurance Business In South Africa
The following are some of the challenges in the funeral insurance business in South Africa:
1. It takes a huge investment to establish a funeral insurance business
2. High competition
3. High service cost
Benefits Of Setting Up A Funeral Insurance Business In South Africa
Below are some of the benefits of setting up a funeral insurance business in South Africa:
1. The business comes with an overwhelming profit for investors
2. Generates income for the government through taxation and importation
3. Job creation
4. Has created an easy way of conducting funeral ceremonies
That is the information we can provide on how to start a funeral insurance business in South Africa.