Most funeral insurers offer similar benefits on their funeral plans. A cash payout within 24 to 48 hours, extras like a small grocery allowance or transport services are some of the benefits offered on funeral cover these days and some even offer grief counselling to the family. These benefits are clearly relevant to a family mourning the loss of a loved one and in need of finances for the funeral ceremony.
However, it is important to look at these benefits beyond its face value and appreciate the benefit in the context of he death of a loved one. Many consumers sign up for cover without understanding how funeral plans work and may have unrealistic expectations or on the other hand do not use all the benefits to the fullest.
Arranging the Funeral
Upon the death of a loved one, most people will overcome the initial shock and consider the funeral. Depending on finances, cultural practices and logistics for friends and family members, the funeral ceremony may be held within days or even weeks. In some cultures, it is required to bury or cremate the dead as soon as possible and this usually means that the funeral ceremony must be conducted by the next day.
Arranging the ceremony itself is not difficult these days. Most funeral service providers understand the needs of the family of the deceased and are able to provide all the necessary services. The body of the deceased can be held within their mortuary, the deceased can be prepared for the funeral ceremony, the transport will be made available and even a venue can be booked through the funeral service provider.
However, this requires immediate finances and many funeral service providers will not begin with the process of arranging a funeral ceremony with at least part of the payment upfront. Finding R10,000 or R20,000 on the spur of the moment is not possible for every South African. This is where funeral cover has an immediate and obvious benefit. Cash is made available within 24 to 48 hours to pay for the funeral ceremoney without needing to borrow money or pooling much needed resources from others.
Informing Friends and Family
A loved one’s funeral ceremony is an important event, albeit a sad one, in any person’s life. The presence and support of family and friends is not only appreciated but also a sign of unity and strength of relationships. Family and friends need to be informed of the death of the loved one and the upcoming funeral ceremony. Once again this communication requires financial resources.
The payout from a funeral insurance can assist and many funeral insurers also provide a separate airtime benefit to allow the family of the deceased to inform other family members and friends. Some funeral service providers will also arrange for the posting of notification boards informing the surrounding community of the date and time of the funeral ceremony and even inform local radio stations where relevant. Once again, this can only be done if the funeral service provider has been paid.
After the Funeral
Just as the grief does not end within the completion of the funeral ceremony, neither does the financial requirements of the family of the deceased. There are still everyday commitments and expenses that need to be attended to. While a funeral insurance is focused on funding the funeral itself, some insures will also provide a weekly grocery allowance for a short period of time.
This may only be for 1 or 2 weeks but it ensures that the family does not have to worry about securing money to pay for everyday necessities. It is particularly useful when the deceased was the sole breadwinner. It gives the family the peace of mind in knowing that the essential living expenses are taken care of for a short period of time until other finances can be secured for the long term, like the payout from a life insurance policy.
In addition, some funeral insurers will also have a tombstone or unveiling ceremony benefit that may payout a short while after the funeral. This is usually a much small benefit within a funeral plan but it will be helpful to some degree in fulfiling the tombstone and unveiling requirements that is seen as essential for many cultures. Once again, it eases some of the financial strain on the family to complete the necessary obligations for their deceased family member.