What to look for in a funeral cover policy.
Losing a loved one is a painful and life-changing moment for anyone. During this time of turmoil in the grieving period, continuing with your daily life and responsibilities can be extremely difficult.
Planning a funeral during this time is no easy task either and the last thing anyone needs on top of facing their loss is financial stress.
This is why it is important to take out a funeral cover policy to ensure your loved ones aren’t left with any financial burdens when it comes to planning a funeral after facing a painful loss.
Let’s look at some tips for what you should look for in a funeral policy.
What is funeral cover and why do I need it?
Funeral cover is a type of insurance that will pay out a certain amount of money in the event of a death, to cover costs of a funeral. Mourning the death of a loved one is never easy and can be extremely stressful. Having a funeral cover policy will help your family financially, during an already difficult time, avoid any financial burdens as funerals can be expensive.
Consider your family’s current needs and what they will be in the long run. Choosing a funeral cover policy that has additional benefits is often a good option. A funeral cover policy can give peace of mind that after you are no longer around, your family will be able to lay you to rest in a dignified manner and stay on their feet financially during that time.
How do I choose the right funeral policy?
There are many different funeral cover providers and policies available. When choosing the right cover for you and your family, keep in mind the below points.
Funeral Cover From A Registered Financial Service Provider
First, when looking at different funeral policies you must keep in mind that only companies registered with the Financial Services Board (FSB) are allowed to sell funeral policies, so, it is extremely important to make sure that the financial service provider's number, along with the name of the insurer, is visible on your policy documentation.
Waiting Periods on Funeral Cover Policies
Another thing that is also important to note is waiting periods. There is normally a standard waiting period of 30 days on these types of policies, which means that, for example, if you should pass away unexpectedly within the first month of owning the policy, the insurer may choose not to payout.
Exclusions on Funeral Cover Policies
When you’re choosing a funeral cover policy, ask about the policy exclusions. Each insurer will have their own list of circumstances in which they will not payout. Sometimes, these exclusions can include suicide or pandemics. Exclusions are standard for most insurance policies around the world.
Missed Payments on Funeral Cover
With so much uncertainty in the world, it is advised to check with the insurer that if you are not able to pay for your policy for some reason, you will be given a grace period without your policy lapsing.
If you have an irregular job and your income is not consistent which may make it difficult to pay for your funeral policy every month, it is advised to contact your service provider and make them aware of the problem. Most of the time, payment arrangements can be made to ensure that your funeral policy stays active.
People Covered On Your Funeral Plan
Most insurers allow you to purchase funeral cover for a number of people. The main options being you and your family. Purchasing funeral cover for yourself ensures that your death will not leave your family with financial burdens. You are also able to purchase funeral cover for your children, spouse, extended family and your employees.
Funeral Cover With Additional Benefits
When choosing a funeral policy, it may be a good idea to see if they have any additional benefits that can help offer some relief to your family after a sudden death.
Your funeral policy should be aligned to suit your lifestyle and needs of your loved ones.
Here are some examples of the benefits that are funeral policies can offer:
Cashback benefit - Up to 50% cashback on premiums for every 24 premiums paid consecutively.
Education benefit - A total payment of R2400 will be paid over 12 months (R200/month) when the main member/spouse dies, to be used for education.
Grocery benefit - A total payment of R900 will be paid over 6 months (R150/month) when the main member/spouse dies, to be used on groceries.
Airtime benefit - Provides R250 airtime when a person dies to help with funeral arrangements.
Ambulance, emergency transport and trauma counselling.
Eyethu Funeral Cover offers a range of excellent benefits which aim to make life after a sudden loss a little easier for families by taking care of some of the basics during a tough time.
Taking Out Funeral Cover For You and Your Family
As life is so unpredictable, the sooner you take out a funeral policy, the better. Planning for unforeseen events is always a good idea and it will give you peace of mind knowing your family are protected in the event of the worst happening.
It is extremely important to keep your funeral policy records up-to-date with information such as the beneficiaries, contact details and the people who are covered under your funeral policy to make sure that claims are paid as soon as possible after a death.
Make sure your family is protected with Eyethu Funeral Cover. Message us on WhatsApp on +27(0) 60 070 2383 to get a quote and buy your policy.