A financial burden is the last thing you need when a loved one passes away. Funerals can be rather expensive, so buying a funeral policy can relieve financial pressure in the event of a death. Taking out funeral cover for you and your family should never be seen as a grudge purchase. Wouldn’t you want to protect your family against the financial burden of funeral expenses?
So why do you need funeral cover?
Are you the sole breadwinner in the house? Does your salary pay for things like your home, groceries, water, electricity, school fees, etc.? Think about what would happen if you were not there anymore. Your family would have to deal with losing you, and they’ll have to take care of your funeral. If there is no funeral plan or money that’s readily available, your family will also have to deal with the pressure of paying for your funeral.
A good funeral plan can give you peace of mind – you know that there will be money to pay for your funeral, or for the funeral of a family member that you’ve covered in your funeral policy.
How much does a funeral plan cost?
If you are a married male between the ages of 30 and 40 years old, and require funeral cover of R15 000 to R20 000, you can expect to pay anything between R70 and R110 per month. Some of the benefits that you’ll enjoy from reputable insurance companies are:
- Funeral cover for your spouse, children (up to four or five), and extended family members
- No medical tests or medical questions asked
- You could extend some covers to include your parents, parents-in-law and domestic workers
- Successful claims should be paid out within two working days
- Deaths related to HIV/AIDS could be covered
- With some policies, double the maximum compensation amount will be paid out if a death is due to an accident
What does a funeral plan usually cover?
A funeral policy can offer short-term funding for the costs of arranging and providing a funeral. It usually covers things like caskets, tombstones, flowers, transportation, catering, etc.
In most cases, a funeral plan will pay out a lump sum at the time of the claim. This is paid to a nominated beneficiary (e.g. your spouse), who can then manage the funeral expenses. Good funeral cover can provide a dignified funeral, especially if money is needed quickly.
What are the advantages of having a funeral policy?
- If one of your family members passes away, a funeral policy will pay out a lump sum, so they can be buried with dignity
- There is no added pressure on your personal finances in the event of a death in your family
- The amount of cover on a funeral plan is usually lower than a life insurance policy
- If the amount that gets paid out is more than the funeral costs, the balance of the money can be used for other family needs
- Your family will not have to worry about any of the financial burdens associated with a funeral.
Death is never something we like to think about, but it’s the circle of life and something that definitely needs to be planned for.