Category: Funeral cover

They say that the only things that are certain in life are death and taxes. While it's a given, none of us know when or how we will die. The cost of a funeral, memorial, and other religious or cultural mourning ceremonies can take your loved ones by surprise.

As morbid and emotionally unsettling as it may be, you need to plan for your funeral. Making the necessary financial arrangements can save your loved ones the hassle of making decisions, coming up with the money to pay for the funeral and related costs, and coordinating with all of the service providers and guests.

Your friends and family members should be allowed an ample amount of time to grieve without having to worry about going into debt, shopping around for quotes, or haggling with service providers like caterers, funeral parlours, or tombstone manufacturers.

Funeral cover or funeral plans are offered by several major insurance companies in South Africa, including 1st For Women, Budget Insurance, Dialdirect, MiWay and Clientele. In the event of your death, your funeral cover will pay out a lump sum of money to your family members to pay for funeral related costs. Some insurance companies may even allocate funds towards certain expenses like groceries, your tombstone, and airtime.

Compare Funeral Cover for 2022

Death and despair

With all the funeral cover policies and funeral plans on the South African market, it's easy to experience decision fatigue. Deciding which insurance companies to approach for a quote, comparing the quotes, deciding how much you can afford to pay on premiums, coming up with an estimate for funeral costs...

The process of even deciding on a funeral insurance plan is lengthy and making a complete comparison of your options can be difficult. BudgetGist does all the hard work for you! That’s why we pride ourselves on being South Africa’s information hub for all things related to finance and money.

Types of funeral cover

Besides comprehensive funeral cover for individuals, there are several different types of funeral cover on the market. Each funeral plan is suited to providing cover to a specific group of people and may have different terms and conditions. Before you agree to a funeral plan or switch any of your family members over to your funeral plan, make sure you understand the circumstances under which you will be allowed to file a claim, the value of the payout, and any waiting periods or other special conditions.

Over 65

Pensioners have a harder time getting funeral cover as they pose a greater financial risk to insurance companies. As these people are older they may not pay as much in premiums over their lifetime compared to younger adults. This means that younger people under the same insurance plan will have to bear the load of these claims.

Luckily, there are a few insurers that do offer a funeral plan for people over the age of 65. These insurance companies include Assupol and Sanlam. These funeral insurance plans can be taken out as a standalone plan, so you don't need to add yourself to a younger family member's funeral plan.

Parent cover

If you would like to consolidate the older member's of your family onto your funeral plan, you may want to consider parental funeral plans. This is ideal if your parents are no longer working, dependent on you or aren't savvy when it comes to insurance and reading over financial contracts. Insurance companies that offer parent cover include Old Mutual and Outsurance.

Parental funeral plans don't have to be taken out in addition to your existing funeral plan, many plans allow you to take out a funeral plan on behalf of your parents. This means you will take responsibility for your parent's premiums and the insurer will pay out the lump sum to you in the event of their death.

Family funeral plans

Similar to parental plans, family funeral plans give you the option of covering your entire immediate family with one premium. In this case, your immediate family includes your parents, spouse and your children. Insurance companies that offer family funeral plans include 1Life and Assupol.

There may be restrictions on how many family members can be on the funeral plan. Additionally, some funeral plans only cover children up to a certain age. Be sure to take these factors into account when deciding on a funeral plan.

Extended family funeral plans

Extended family funeral plans allow you to take out funeral cover on behalf of a member of your extended family. You may have a member of your extended family who is not financially secure and does not have immediate family to take care of them. This could be an aunt, uncle, grandparent, cousin or member of your spouse's family such as your mother-in-law.

This allows your family the peace of mind of knowing that their loved one will be buried with dignity and all the necessary financial arrangements have been taken care of beforehand. Insurance companies that offer extended family funeral plans include MiWay and Outsurance.

Will your family still be covered if you pass away?

If you are the main member of a family funeral plan or extended family funeral plan, you may be wondering what happens if you pass away first. Luckily, in the event of your death, the responsibility of your funeral plan can be passed on to another family member.

Some family funeral plans will even offer a grace period; so your family doesn't have to start paying your premiums immediately after you pass on.

Accidental death and waiting periods

Taking out a funeral plan does not mean you are immediately covered. Most funeral plans have a waiting period that comes into effect when you sign the contract. If you or your family members pass away during this waiting period your insurer may not process your claim or pay out the full lump sum as stipulated in your contract. Your waiting period may depend on the co-morbidities of the beneficiaries.

Don't fret, there are still ways to claim while in a waiting period! Many insurers will allow you to make an accidental death claim. There is likely a clause in your contract regarding the lump sum amount that will be paid out in the event of accidental death.

Claiming cashback whilst you're still alive

Many funeral plans in South Africa will give you a portion of your premiums back in cash. The criteria to claim cashback from your insurer can depend on your contract so be sure to read the terms and conditions carefully. You may need to have an active plan for a specified amount of time, for example, 3 years or 5 years. Insurers that have cashback benefits include Assupol, Sanlam and Liberty.

A comprehensive guide to funeral cover

Before you can begin to decide on a funeral plan you should decide what your needs are. Some questions you can ask yourself include:

  • What do you want to get out of funeral cover?
  • What do you expect your funeral to look like?
  • How much would the funeral, burial, and cultural ceremonies cost?
  • How many people do you want to cover?

Additionally, you may want to assess the possibility of passing away before the waiting period ends. There are a few funeral plans that do not have waiting periods.

Many well-known insurance companies in South Africa offer funeral cover, such as Sanlam, Liberty, 1Life, Budget Insurance and Clientele. However, you can also approach your bank for funeral cover. These banks include but are not limited to African Bank, Capitec, Absa Bank, Standard Bank and Nedbank.

When consulting with a broker from one of these companies or your bank, try to articulate your needs as clearly as possible. Ask them if any policies match your non-negotiable needs.

Claiming on funeral cover

While setting up a funeral plan, you may decide on service providers such as your funeral parlour, tombstone manufacturer and casket vendor. You may even give your loved ones guidelines on which styles of casket you prefer or what you'd like the message on your tombstone to say.

Your funeral parlour may assist in providing your loved ones with a claims form to submit to your insurer. When it comes to family funeral plans, parental funeral cover, and extended family plans, your insurer may contact you to ask for proof of death before processing your claim. Proof of death is usually in the form of a death certificate.

Is funeral cover worth it?

Knowing that your loved ones will not have to bear the cost of your funeral can give you peace of mind. Funeral cover is worth it if you know that your family will not be able to handle the sudden financial burden that comes with your death.

Knowledge is power and knowing what you want out of your funeral policy can prevent you and your loved ones from overpaying on premiums or having to deal with complicated claims processes and lengthy waiting periods! Luckily, BudgetGist is here to help! We are South Africa’s information hub for all things related to finance and money.


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