THOUGH death is a natural part of life, no one wants to think about loved ones dying – and our inability to deal with that, often leaves us vulnerable to financial struggles after the passing of a loved one.
Planning for what happens to your family after your death is important.
The correct funeral cover can have a long lasting and positive impact on the lives of those left behind.
According to Meerkat (SA) these are some of the criteria and questions you need to ask when choosing suitable funeral cover.
– What are the needs of your family, both now and in the future?
– How many people would you have to cater for at the funeral?
– Would your family need legal assistance at the event of your passing?
– Would your family need funeral assistance services in the event of your passing?
– What is the waiting period for the payout?
Answers to these questions will determine the type of funeral cover you would need to take –comprehensive funeral cover, burial cover, extended family cover, standard cover, etc.
How many people can you cover with one funeral policy?
Often times, the people we consider family aren’t necessarily part of our immediate family. Over and above our spouses or children; grandparents, cousins, uncles, and other relatives can also be highly treasured members of the family we would like to cover in our policy.
How old are the family members you’d like to cover?
Some funeral policies limit the members it can cover according to age. For example, life cover for pensioners in South Africa can be much more difficult and expensive to obtain than life cover for parents under 60 in South Africa. Enquire about the age limitations of the funeral policy you intend to take before you purchase funeral cover from a specific company.
How much will you need to pay for the funeral cover?
You need to ask yourself how much the individual members included in the policy will be covered for, and how much it will cost you on a monthly basis. Make sure you answer financially related questions honestly, or you’ll risk potentially paying more than you are prepared for. Also, keep in mind that the cheapest funeral cover in South Africa is not necessarily the best funeral cover. There may be some hidden fees that you didn’t expect.
How to save on funeral cover in South Africa:
Commission and Costs
If you purchased your funeral product from a salesperson, they are probably being paid commission.
Ask them how much they will be paid, and whether you can negotiate that amount lower.
Older funeral products often need paper application forms. This can be costly. Newer policies that are administered on the internet can be much cheaper.
Education Benefits
For parents with school-age children, education is one of the most meaningful legacies they can leave behind. Some comprehensive funeral covers offer educational benefits to assist with the cost of education for the policy holders’ children in the event of the policy holder’s death.
Ask your funeral cover provider about education benefits. It’s an important factor that will influence the overall cost of your funeral cover in South Africa.
Does the policy increase with accidental death
Accidental deaths leave families more devastated and even less prepared for the sudden eventualities brought about by the sudden death of a loved one.
Enquire about accidental cover which can provide your family with the financial means to arrange your funeral and even continue their life without incurring large amounts of debt in the event of accidental death.
Does the funeral cover offer burial repatriation?
Find out whether your funeral cover offers transportation arrangements for you or your loved one’s repatriation in the case of death happening away from home. From what countries or provinces do they repatriate a body from? Do they make arrangements for a family member to accompany the mortal remains of a policy member covered by the policy?
Voluntary Policy Pause
In the case of you losing a job, being retrenched, illness, or any other case where you are left unable to pay your premium, would you be able to pause your policy for a set period without losing your cover?
What are the funeral cover inflation rates?
Will the premium amount increase overtime? How often, and what percentage rate? Once you have got an idea on how this will be; you can then decide if you’d still be able to afford it should your income not increase as well.
Some advantages of Funeral Cover
Peace of mind that you or a loved one are not overburdened in the event of death.
You can get covered immediately and select beneficiaries who will receive the pay-out.
Your beneficiaries can use the lump sum to pay for a wide range of immediate expenses.
Reduced financial pressure in the event of death when taking out your funeral insurance policy, you can indicate who you would like to include in the policy.
Some funeral cover services can double the payment in the case of accidental death.
The opportunity to plan your funeral in advance.
Disadvantages of Funeral Cover
– The maximum amount which you are covered for can be limiting, depending on the funeral expenses.
– Most funeral insurance companies do not pay out if the policy holder’s death is due to suicide.
– You could pay more over time than the actual cost of a funeral, especially if you are obliged to pay for your cover even after retirement.
– Insurance benefits may be subject to approval.
For more information visit Meerkat at https://www.meerkat.co.za/