Most people don’t like to think about death, but like tax and wrinkles it’s inevitable. One way to lessen the financial burden on your family when you die is to take out a funeral policy. Some people wrongly assume that if they have life cover, funeral cover is part of the deal. This is not the case.

Probably the most significant difference between a life policy and funeral cover is that funeral cover does not form part of the deceased’s estate. The money is paid out within 48 hours to the stated beneficiary as long as a death certificate is provided.

Who needs it?
Funeral cover is available to anyone. If the patient is an Aids sufferer for example , the premiums have to be paid for a 12-month period before death benefits are paid out.

Cover can be applied for separately, or it can linked to a life policy. The premiums vary from approximately R35/month to as much as R300/month, depending on the type of cover taken.

The Cost
The premium is determined by the cost of the funeral and deathbed expenses. Funeral costs start at R3000, but can escalate to as much as R50 000. Make sure that you document your parting wishes — it's a considerate gesture for your family who would otherwise be faced with a battery of questions and options at a time when they are least capable of dealing with them.

Funeral plans are a risk investment. The money being paid over every month for the funeral plan would be worth more invested somewhere else. Remain debt free and when there is an untimely death you will be able to pay cash.


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