Funerals play an important role in celebrating the life of the recently deceased. However, they’re often expensive and add extra stress in a time of grief.
We consider why funeral cover is a necessity, how much cover you might need, and where to get it.
Tip: Rest assured and avoid unnecessary stress with car insurance.
Planning to avoid extra pain
Funeral cover, or funeral insurance, pays out a lump sum in the event of an insured person’s death, removing the substantial burden of funeral costs from those who are left behind. The insurance is commonly taken out by a principal member and their direct family, but it can also apply to extended family members for whom the insured is financially responsible.
"Adequate funeral cover ensures that the cost of your funeral does not place an undue financial strain on your loved ones when you pass away," explains Anton Keet, head of risk services at 1Life.
Matt Kloos, CFO at CompariSure, notes a unique benefit, in that funeral cover pays out very quickly compared to other forms of insurance. This can mean the difference between a dignified send-off and a very modest affair, as many South Africans are not in the position to cover upfront costs.
It is, however, important to note that a waiting period of 6 to 12 months generally applies before a funeral insurance claim can be made. Once this period has elapsed, payouts are often available within 24 to 48 hours of claim validation, depending on the provider.
How to choose your cover
“The cost of funeral insurance depends entirely on your needs, but can also be influenced by optional benefits,” notes Kloos. These can include a tombstone and cashback option.
It’s important to consider how many people you are insuring, and the type of funeral you’d like for them. Clarifying your needs will make the process much easier.
“If the cost of the funeral is less than the amount paid out, the remaining funds can be utilised for other family expenses,” says Keet. This can alleviate the cost of groceries, rent, school fees, and transportation.
Where to get funeral cover
The best way to choose a funeral cover provider is by the benefits they bring you. These benefits may include how quickly they pay out, the minimum amount of time before a claim can be made, the conditions necessary to make a claim, or the conditions that might exclude a claim.
Funeral cover is offered by an array of South African banks and insurance companies, so be sure to shop around for a plan that suits you best.
It’s equally important to plan for dark days as it is for your golden years. Be sure to save for your retirement today.