Funeral cover is something most of us don’t like to think about too much. Like life insurance, it reminds us that we are fragile and that life could take an unexpected turn at any time. However, getting adequate funeral cover is essential to make sure you are covered if you were to die unexpectedly.
“A funeral cover policy is there to help you pay for the costs involved in a funeral so your family can focus their time and energy on healing.” (www.funeralplans.za.net). There is a common misconception that people don’t need funeral cover, as there will be enough money in their estates for their family to fund the funeral. However, the reality is that most of the time, your estate is frozen when you die, and those funds only become available to family members much later down the line. This means that without funeral cover, your family would be left to foot the bill for your funeral.
Funerals today can cost between about R7,000 – R30,000, depending on various factors. This is a significant amount of money to come up with in a short space of time, especially when you are grieving the loss of a loved one at the same time.
Funeral cover varies depending on who you take this out through, and what kind of cover you go for. Funeral cover can cover just you, or can cover extended family members as well. Obviously, the more people who are covered on your policy, the higher your premiums will be. Many insurers offer an “economy-of-scale” benefit, meaning that your premiums decrease slightly for each extra person on the cover.
There are also numerous additional extra’s you can opt to take with your policy.
Hollard, for example, offers the following benefits to your funeral cover:
- Monthly Provider / Groceries Benefit – to provide money for your family to buy food and groceries when you are gone
- Memorial / Unveiling Benefit – up to R10,000 is provided towards the cost of a tombstone
- Vehicle Access – there is an option to get a hired vehicle to assist with funeral arrangements (www.hollardfuneral.com)
In obtaining funeral cover, you will first need to get comparative quotes from various providers, and assess which one makes the most financial sense. In today’s world, every second company is offering funeral cover. It is no longer only insurance companies offering this service. Now retailers such as Shoprite and Woolworths are offering this within their boutique of financial and insurance services. Banks now also offer this kind of cover. There are also providers who specialize in offering only funeral cover, and offer a wide range of packages and options to choose from.
When comparing quotes, remember to not only compare the monthly premium, but to compare the benefits and terms and conditions as well. Ensure you read the small print carefully here, as there are companies who will take advantage of people who do not understand the ins and outs of their policies. Now that you know how to get funeral cover, ensure you apply for this as soon as possible, to make sure you are covered should you die unexpectedly.