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.

Your phone vibrates in your pocket. As you open the SMS, you’re greeted with surprising news: “You’ve won £100 000 in the UK lottery, please call John Smith to claim your prize.” Seems legit, right? With the rise of the digital era, scam artists now prey on hundreds of unsuspecting victims without leaving the house. So, what about the next time you receive an email, phone call or SMS from an insurer offering you funeral cover? We’ve outlined a few guidelines, to ensure you don’t get caught out. Yes, a funeral can cost tens of thousands. But knowing the difference between a genuine and fake funeral policy could save you a great deal of time and money.

Pete’s Funeral Plans

If the name of the alleged service provider doesn’t sit well with you, it’s probably a scam. The same goes with cold calling and bulk messages. An authorised Financial Services Provider (FSP) will never ask for your banking details before you’ve agreed on a funeral plan. If they’re in a hurry to know who you bank with, do not proceed.

Read the Fine Print

You can now apply for funeral cover at certain ATMs, or by sending an SMS and having a sales agent call you back. That’s great, if you’re concerned about time. However, you should always read the fine print before committing to a policy. Become familiar with the claim process, waiting periods, clauses and benefits. Take the time to find the right funeral plan for you. This will help you identify the legit insurers from the opportunists.

Understanding the Law
Only a company licensed by the Financial Services Board (FSB) can sell you a funeral policy. By law, these policies must be underwritten by a registered long-term insurance company. If you have any doubts, you can always call the FSB and check if the insurer is registered.

Cooling Off
You should receive a certificate when your new funeral policy is issued, outlining the terms and breakdown of costs. The summary will also highlight your monthly premium and amount of cover. Once you receive this documentation, you have a 30-day period to change your mind. If you don’t get a certificate and you’re having trouble contacting the insurer, speak to your bank immediately about cancelling the debit order.

How Low Can You Go
What may seem like a good deal, could be a scam. If the service provider offers you cover for up to R100 000 and you’re only paying R50 a month, there’s something wrong. You should shop around for the right deal, but remember that a super low premium doesn’t mean you’re getting the best funeral plan for you and your family.

A funeral policy provides for you and your loved ones at times of loss and eases the financial burden for those left behind.

The only certainties of life, they say, are death and taxes; and this is why a funeral plan is vital. It’s not something any of us likes to think about, but to care for our families, now and in the future, investing in a funeral policy could be one of the most significant decisions you make for yourself, as well as your loved ones.

Death unfortunately touches each of us, and while none of us can be spared of its effects, the loss can be eased by a funeral plan that caters to the needs of those left behind, at a time when they need it most. When we lose a loved one, it’s hard to think clearly about what needs to be done. Who needs to be contacted, the services that need to be organised, and payments that need to be made are often a jumble in the confusion that follows the loss of a family member.

But a funeral plan can help in the reassurance that your loved ones will not be faced with a financial burden on top of the emotional losses they are already enduring. Funeral policies typically pay out quickly, with recipients generally receiving cash back between 24 and 48 hours after a family member’s passing. This payment is most often paid out as a lump sum and the recipient then has a choice of what the payout should be used for. For most, the cash back is used to cover practical expenses associated with the funeral of a loved one. These needs vary from person to person, and may range from transport costs to airtime. Most often the payout provided by a funeral plan are used for tombstones, unveilings, caskets and plots. But there are also day-to-day expenses, like groceries, that are often forgotten at times of a grievous loss which can also be aided by the payout of a funeral policy.

Dealing with the death of a loved one is an emotional burden, but the financial strain can be eased with an affordable funeral plan that prioritises the honour, dignity and legacy of the deceased, as well as those left behind. We can’t help with your taxes, but we can certainly offer you some peace of mind and compassion about the other certainty in life.

A funeral policy that looks out for you and your family is a lasting investment from the peak of your life to help you through the valleys.