Funeral insurance is an important product to have in your portfolio. It’s very vital to understand what funeral insurance is first. In short, this is an insurance policy that can assist you and your family in the event of loss. It makes money available when an insure person pass away. On this page, we will look at what it is and why it’s important. This article is based on our own research and experience and is based on our opinion.
What is Funeral Insurance?
This is a kind policy you take out on the lives of your loved ones. You can cover your direct and indirect family in the event of them passing away. You insure their lives for an amount. This payout can be used for an admirable burial. Below we will look at some of the advantages of having cover in a time of need. Firstly, a burial is expensive. It costs a lot of money to bury a person. You need to consider everything you need to pay for.
Burial Costs Include:
- Cooling Facilities
- Fresh Flowers
- Pamphlets, etc.
Not having money available quickly can be very hard on your family. They have to deal with the loss of live, and then worry about money. A funeral insurance policy will make sure that you have money available quickly. Some providers pay as quickly as 24 hours. This means you will have access to money fast.
Does Funeral Insurance Have Benefits?
Every provider will make money available. This is the foundation of the product. South African providers have to make their product stand out above the rest. This means they have to give you value adding benefits. Some of these benefits can really make a difference. Your funeral insurance might cover things like groceries, education, unveiling, inkomo, etc. Some providers will be able to arrange the burial on your behalf. They will deduct the payments from your payout. All the money that remains will belong to the family. This money can be used for anything.
Cash Only vs Cash & Benefits Funeral Insurance
There are two types of funeral plans we offer. The first is a cash only product. This means that you insure a life for R10 000, you get R10 000. You can then use this money to source providers. This is a great way to arrange a burial if you know what you doing. You can find specials and make sure you spend your money wisely. This is an option for a more experienced person. There is a lot of advantages of you know how to spend money.
The second option is cash with funeral services option. With this option, you get a lot of free services over and above your payout. For example, AVBOB gives you up to R16 000 in benefits over and above the payout. They can arrange everything for you. All money that remains will be paid to the beneficiary.
A funeral insurance policy will help you pay for a burial when an insured life is lost. You can get access to money very quickly. You can cover multiple people on the same policy. You pay a monthly premium and in return, you have peace of mind.