What is a Funeral Cover? Why do I need one?

This article was posted on 03 June 2016

Posted in Funeral Cover

Funeral 1

Death is unfortunate, but it is certain in life. At the time of your death, your family has to arrange the funds required to organize your funeral. What can you do to help them? This is the importance of including Funeral Cover as a part of your financial plan. In the event of your death, Funeral Cover ensures that your family need not worry about the money required to organize your funeral.

Do you need Funeral Cover?

The popular misconception among the middle income earners in South Africa is that Life Insurance automatically takes care of your funeral expenses. But, Life Insurance involves stricter norms to be satisfied, before any payout is done. People never recognize the importance of a Funeral Cover unless they ever had experienced the difficulties of organizing a funeral. Your close family members might find it difficult to arrange the funds at a time when they are finding it difficult to cope with your absence. Taking a Funeral Cover is the simplest way to help them gain peace of mind, at a very difficult time.

Another popular objection among people is that Funeral Cover is suitable only for older citizens, which is wrong. You may note that deaths among younger citizens are also common due to many factors such as accidents.

How does a Funeral Cover work?

A Funeral Cover pays a certain amount to your beneficiaries to organize your funeral. You can take the policy extending the coverage to your entire family. In case of death of any of the family members covered under the Funeral Cover policy, the lump sum amount is paid to organize his or her funeral. Your partner or spouse, children, parents, in-laws, etc) Funeral Insurance Plans can afford you cover of up to R50,000 per family member. Insurance companies also provide certain additional benefits, such as assistance in repatriation of the body, grief counseling, etc. 

Most companies allow extending cover for up to 13 family members in a single Funeral Cover Insurance Policy. The cost of Funeral Cover Insurance Plan depends on various factors such as age, gender and the chosen level of cover, for each of the members covered.

People tend to take Funeral Cover for elder members of the family, like parents, excluding themselves, which is not a good trend. There is more value and cost savings when the whole family is covered.

How is a claim made under a Funeral Cover policy?

Funeral Cover claims are paid to beneficiaries directly and settled within 48 hours of submitting the documents. Certified copies of Registration of Death and Death Certificate, along with certified copies of the Identity of the deceased person and the beneficiary are to be submitted.

Claims under a Funeral Cover Plan are paid to the beneficiary directly within 48 hours of submitting the documents.

There are various plans and options available under Funeral Cover insurance. We at Mister Compare help you choose the right Funeral Cover policy for you and your family, from a variety of available options. We also assist you in comparing and purchasing other insurance products such as Health Covers, Life Insurance, Legal Covers and Hospital Cover. Remember, More Options leads to Better Decisions.

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