Funeral cover is a type of insurance policy that pays out upon the death of a person. The purpose of this payout is to help the family of the deceased pay for funeral-related expenses. Some funeral plans also cover extras, like airtime to contact family and friends to inform them about the death, groceries to sustain the family of the deceased until finances can be stabilised and even transport services.

Cost versus Benefits

The advantages of funeral cover is obvious. The insurer pays out at a time when you cannot be worrying about finances yet need to ensure that your loved one is given a proper last send off. Funerals in South Africa can be expensive. A bare basic funeral can cost around R10,000 while a more lavish ceremoney can easily exceed R30,000 and even surpass the R50,000 mark.

Funeral insurance starts from as little as R50 per month depending on the insurer, number of people covered and amount of cover. Age, pre-existing diseases can also affect the cost of funeral insurance. Therefore a younger person who is healthy, like a child with no diseases, will be covered for much less than a senior citizen with chronic conditions. Family funeral plans often work out cheaper by covering several family members under one plan.

A funeral plan pays out within 24 to 48 hours. That is usually soon enough to pay for a funeral, as some cultures conduct funeral ceremonies as soon as possible after death. The money helps to reduce a family’s stress at the time of bereavement and ensure that their loved one is given a dignified and befitting final farewell. The extra benefits will also reflieve the family’s suffering, especially if the deceased was the sole breadwinner.

Who Needs Funeral Cover?

While some South Africans may have the cash in hand to pay for a funeral, most people need to find the financial resources to pay for the ceremony. Funeral cover relieves the pressure on the family to find funds for the funeral ceremony. It also spares the family of the deceased from becoming indebted to money lenders who may charge high interest or from having to borrow from family and friends.

Therefore every family without the disposable income to immediately fund a funeral ceremony should consider a funeral plan. It is not only for the main breadwinner or earners in the family. Other family members should also be covered to prevent the earners in the family from being financially strained to pay for their funeral. Death is a certainty that can strike at any time. Both the young and the old should be covered.

It is important to consider how your death or the death of your loved ones will impact you in financial terms. With a family funeral plan, the parents and children within a family can be covered under one policy. However, funeral insurers in South Africa understand that a family may include other members as well. Therefore many family members can be added to the same plan, such as the parents, in-laws and grandparents.