Funeral cover - an oldie, but a goodie

There are a lot of new types of insurance products on the market (you can even insure your pooch, nowadays), but when it comes down to getting the correct mix of insurance products in your portfolio, you cannot discount funeral cover. It’s an oldie but a real goodie, and if you don’t have funeral cover in place, you will do, shortly after reading this article.

If something happened to you today, is there enough money lying around to get a proper burial arranged? Most South Africans are feeling the pinch, and plenty of us are up to our eyeballs in debt. So, the chance of having an emergency stash of R75 000 under your bed is about as likely as you getting all 6 numbers in the Lotto! It’s just not going to happen, is it?

But that is exactly why we all need a funeral policy!

It’s designed to be that emergency money you need paid out quickly after a death.

Yeah, but how much could all of those costs actually amount to? More than you anticipate. A funeral can cost upwards of R75 000, depending on what services you require.

Have you considered:-
  • The choice of a coffin?
  • What if you decided to cremate?
  • Transportation costs? (Is the funeral happening around the corner from you? Probably not)
  • Catering? (You know it’s in our culture to put on a big spread, in honour of the deceased)
Unlike life insurance, which serves a slightly different purpose (paying out a significantly larger amount of money to settle big debts like a bond, and provide capital for family member’s long term security), funeral cover is that quick win your family will need after you pass away, or something you need when another loved one passes away.

If you are cash flush and can easily pull out your wallet to cover the cost of a funeral, then you don’t need a funeral plan. But, most of us aren’t nearly as cash flush as we make out to be.

There are some other benefits to having a funeral plan in place:-
  • No medical exams
This is a real bonus because getting to a pathology room for a set of bloods, or even a medical exam can be a real hack…and we are yet to meet someone who likes the idea of having a needle shoved into their arm.
  • Multiple family members
An uncle or an untie passes away and who is everyone in the family going to be turning to for financial assistance? It’s going to be you. A good idea is to consider the impact the passing away, of a family member, is going to have on your pocket. Spending a couple of hundred bucks a month to negate that risk, might be worth your while, don’t you think?

Funeral cover is a unique insurance policy, in that it is the only type of policy that is going to put money into your hands 24 hours after a death. You know you need one in place.