Having to deal with the loss of a loved one is a difficult and very trying time. While going through all of the motions one does not have the strength and time to wonder about funeral arrangements and the financial stress that goes with it. By taking out a Funeral Policy you eliminate the financial stress of having to pay for what’s needed in arranging a funeral.
There are many different things to consider when taking out a Funeral Cover as there are many different types of Funeral Covers available to choose from.
Funeral cover for yourself
This is perhaps the most important of the covers that you can take out for yourself. This will allow your family to make the necessary funeral arrangements upon your death without them having to worry about where the money is coming from.
Family funeral cover
I’m sure that you would want to have the peace of mind knowing that should anything happen and there is death in your family that you will be covered and able to make the necessary funeral arrangements. Taking out a policy to cover yourself and your family members (spouse, children, parents, in-laws) will prove to be a very wise decision in the unfortunate event of them passing away.
Group funeral cover
This type of cover can be taken out by a third party for a group of people (not related to you) i.e. a company can take it out for its employees.
Depending on who you take your cover with, your insurer will either pay out a cash lump sum to you or the beneficiaries, who will then have to arrange the funeral themselves or arrange the funeral for you at the cost of which you are covered for that will include the benefits that you have signed up for.
Benefits included in a Funeral Plan
Different insurers offer different benefits and depending on how much you want to spend when taking out Funeral Cover you can have benefits customized to your policy.
What are some of the benefits that you can add to your Funeral Cover?
- Accidental Death benefit – certain insurers will double the pay-out amount in the event of the assured passing away as a result of an accident.
- Counselling benefit – should there be a need for counselling for any of the bereaved close family members then this will be included as a benefit.
- Tombstone benefit – the insurer will provide the family with a tombstone and pay for the erection thereof.
- Repatriation benefit – should it be necessary for the body to be transported, this will be covered for.
- Grocery benefit – money or vouchers will be made available (usually worth between R2000 to R5000 to take care of basic household needs.
- Airtime benefit – the beneficiary will receive an amount of airtime to cover the cost of calls made to arrange the funeral.
Who can I cover on my funeral plan?
Depending on your familial situation, the type of cover and the insurer that you decide to take the policy with, you will have options as to who you can provide cover for on your policy.
Scenarios can include:
- A husband taking it out for himself, covering his spouse and children as well as add his parents and in-laws.
- A young woman taking it out for herself and her younger siblings.
- The chairperson of a Stokvel- society for members of the stokvel.
Funeral Cover Pay out
Claims are normally paid out between 24- and 48 hours upon receiving all necessary documents, certified by a commissioner of oaths, which includes, identity documentation of the one who passed away as well as the beneficiary (-ies), death certificate, policy documents and all other relevant documents to make a claim.
Few people think about taking out a Funeral Cover until they are faced with death itself. Funerals are expensive and can cost anything between R10 000 to R60 000. Make sure that you have made provision for yourself and your family.
- Enzo Leigh Botes