Death cover is a term often used interchangeably with ‘Life Cover’ and
‘Life Insurance’. Death cover relates to 3 types of insurance products:
-
Funeral Plans
-
Whole Life Insurance
-
Term Life Insurance
Funeral plans or funeral insurance is used for financial matters relating to the
costs involved in burying the deceased. Funeral plans typically cover things like:
• Removal of the deceased from the place of death
• Use of mortuary facilities
• Official documentation needed to register the death
• Placement of funeral notices in newspapers
• Cost of the hearse
• Coffin
• Flowers and wreaths
• Undertaker
• Cremation of the body
• Grave equipment
Both whole
life insurance and term life insurance
have the following purpose:
• To pay out a death benefit
• To provide money to pay off the mortgage of the deceased’s house
• To provide an income for your spouse and children
• To payout the spouse and children of a business partner
• To pay possible taxes
In essence death cover relates to funeral plans if the immediate short-term expenses
incurred when burying the deceased is being referenced and whole life or term life
insurance when referring to bigger, long term costs.