Document Abstract
Published:
2009
Requiescat in pace? The consequences of high priced funerals in South Africa
Expensive funerals cause household hardship
In Southern Africa, funerals are generally considered an individual’s most important rite of passage and households may spend the equivalent of a year’s income for an adult’s funeral. Loans might be taken out with money lenders, if need be, in order to have a funeral that befits the status of the household and of the person who has died.
This paper argues that increases particularly in mortality in middle age (primarily AIDS related) can lead to economic hardship for households that experience the death of a relative, especially if burial insurance policies have not been taken out and if types of funerals do not change to reflect changes in mortality patterns.
The authors base their results on a survey looking at funeral expenses in 473 households in the Mpumalanga Province, South Africa. The area is home to South Africans and legally settled Mozambicans.
The largest financial outlays are shown to be for a coffin, meat for the meal following the funeral, and groceries both for the meal and to feed mourners who come to pay respects (some of whom stay with the mourning household for several days).
Schemes exists in South Africa to help individuals save for funerals, including membership of a burial society, or the purchase of a funeral policy with a funeral parlour or an insurance company, but policies are less likely to be taken up by younger household members. Pensioners can pay into their burial account at the pension collection point and are more likely to join a scheme as they reach pensionable age.
Main findings include:
[Please note: this article is accessible online, free of charge to residents of nearly any developing country or transition economy, whose internet-access address can be automatically recognised by the NBER website. If you are in a developing country/transition and still have access problems, email wwp@nber.org for support]
This paper argues that increases particularly in mortality in middle age (primarily AIDS related) can lead to economic hardship for households that experience the death of a relative, especially if burial insurance policies have not been taken out and if types of funerals do not change to reflect changes in mortality patterns.
The authors base their results on a survey looking at funeral expenses in 473 households in the Mpumalanga Province, South Africa. The area is home to South Africans and legally settled Mozambicans.
The largest financial outlays are shown to be for a coffin, meat for the meal following the funeral, and groceries both for the meal and to feed mourners who come to pay respects (some of whom stay with the mourning household for several days).
Schemes exists in South Africa to help individuals save for funerals, including membership of a burial society, or the purchase of a funeral policy with a funeral parlour or an insurance company, but policies are less likely to be taken up by younger household members. Pensioners can pay into their burial account at the pension collection point and are more likely to join a scheme as they reach pensionable age.
Main findings include:
- spending in households is significantly lower following the funeral, relative to other households
- children in households that experienced a death are significantly less likely to be enrolled in school
- adults are significantly more likely to report problems in the household, including symptoms of depression, and periods of anxiety
[Please note: this article is accessible online, free of charge to residents of nearly any developing country or transition economy, whose internet-access address can be automatically recognised by the NBER website. If you are in a developing country/transition and still have access problems, email wwp@nber.org for support]
