Top reasons why you need funeral cover

Looking after your family in times of need is of vital importance. You can never tell what is just around the corner, and so you need to protect your family financially. This might sound impossible, especially during economic downtimes, but you can do so by taking out insurances and ensuring that you save each month.

One of the most important steps to take in looking after your family is to take out family funeral cover. This means that your family will be able to use the money to pay for your funeral should the worst happen and your extended family will also be included in the cover. Not sure why you should take out funeral cover for your parents and extended family? Below are some reasons why it is vital.

It pays for the funeral

Family funeral cover is used to pay for your funeral or the funeral of a loved one who is part of your policy. The money your family receives upon your death will be more than enough for them to give you a dignified burial without having to pay out-of-pocket for expenses.

This also means that you will not have to undergo a medical examination as you would with life insurance, but you will need to be sure that there are no exclusions regarding the payout. Some family funeral cover options will payout within 48 hours of a death if it is due to natural causes, but others might require further investigation.

It is affordable

Many people assume that funeral cover for their extended family will be expensive, but the truth is that funeral cover is quite affordable. The monthly premiums are usually much lower than other insurances, which means that you will be able to provide for your family without breaking the bank.

You will find that some family funeral cover options are  based off of your income, with premiums only increasing if you add more people to the plan. Children will incur lower premiums which will not make your monthly expenses too high, but adults will be charged adult premiums. And you will have to ask about the age of your children, as some funeral policies work in the same way as medical aids or life insurance where at the age of 21 your children will be considered adults.

There are extra expenses

Not many people are aware of how much a funeral can really cost. Coffins alone can cost upward of R6000, which can add to mounting costs significantly. And beyond the cost of the actual funeral, your family will have to pay for extras such as a headstone, the ceremony at the church and transporting family members.

Being able to pay for these expenses easily, and without a hassle, will allow your family to grieve properly. They will not have to worry about spending their savings on an expensive headstone or coffin but can rather spend time celebrating the life you led and how much you meant to them. It might not be pleasant to think about what will happen to your family once you are gone, but having family funeral cover will keep them protected against further debt.

Your family won’t incur more debt

If you are the sole breadwinner, you will most likely worry about your family getting into debt when you pass away. Similarly, you might feel that having to pay for the funeral of a loved one will become too expensive for you to handle with your current finances. This is where funeral cover for extended family comes in handy.

If you should pass away, your family won’t have to be concerned about the cost of a funeral, and if a loved one on your policy dies, you will be able to give them a dignified funeral without getting into even more debt. This is one of the biggest benefits of funeral cover and you will find that it will save you money in the long run. Not having the funds to give your parent or spouse a dignified funeral due to expenses will rob you of closure, so be sure to invest in funeral cover sooner rather than later.

The payout is fast

If you have life insurance but do not have funeral cover, your family will be waiting for a while for the payout. But with funeral cover, because it is being used to cover a funeral, the payout happens within 48 hours. This means that your family can arrange a funeral as soon as possible without having to wait to complete unnecessary paperwork or for the money to arrive.

It is important to note that the rest of the policy will be paid out within six months, but  the amount put aside for your funeral will arrive quickly and in time for a dignified ceremony. This will allow your family to have closure and they will not have to worry about finding the funds to pay for a funeral, headstone and ceremony. A fast payout will make the grieving process easier as finances will be taken care of.

 

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— Arrive Alive (@_ArriveAlive) October 18, 2018