Cover for funeral costs is a popular type of insurance among South Africans and there are many options. Remember, this type of policy is mainly for immediate costs that arise following the death of a loved one. Consider your options and look for some extra financial support.
Losing a family member is never easy. Along with coping with the loss, there are also many costs that make it feel more overwhelming. A funeral plan can help ease at least some of this financial stress. With Discovery Life Funeral Plans, you and your family members can each get cover of between R10 000 and R60 000 (children cover amounts may be smaller depending on their age). With many funeral cover options available, it’s good to understand exactly what your cover includes and how long it is available.
When you make your choice, here are five things to consider:
- Cover as part of your employee benefits is usually for immediate family members only. This cover ends when you leave the company or even when you retire. There are policies that cover your extended family members too.
- Cheap doesn’t always mean you save. What you pay will be based on the amount of cover, benefits, your age, and the number of people on your policy. Look at all the policy benefits, because for a small increase in your premium, you could possibly get more value.
- Understand how your premiums will increase and if the benefits on the policy increase with it.
- Know if you have cover for the whole of life or if the cover ends after a specific time. For example 10 years after you took out the cover or at a certain age. You may outlive your cover term and will need a new policy in that case.
- Your life insurer may be able to offer you a funeral policy as part of your cover at a better premium and with more benefits. When possible consider combining funeral cover with life cover, if you haven’t already, and provide for loved ones beyond a funeral.
Paying a small monthly premium shouldn’t be the only reason why you choose a specific plan. Some valuable extras on Discovery Life Funeral Plans, which are included in the premium, help to ease the pressure of dealing with unexpected costs. Also, find out how long it will take to receive your payment. A Discovery Life Funeral Plan, for example, pays out 24 hours after you submit the necessary documents, and gives some added protection, like:
- Double payment of the policy amount when a policyholder or spouse passes away in an accident. For example, if you have cover for R20 000, the policy will pay R40 000 in case of an accident.
- A cash payment of up to R8 100 when the policyholder or spouse passes away to help pay for food, school fees or any other living costs.
- A memorial benefit of R5 000 for a gravestone and unveiling.
While you can buy funeral cover directly from financial services companies, it is never a bad idea to speak to a financial adviser about this. Your financial adviser can give you guidance so that you can have financial support that goes further than the costs of a funeral.
Read more about the Discovery Life Funeral Plan and get cover from R53 a month. The monthly premium depends on the number of people you want to insure. You can speak to a financial adviser about the Classic and Essential Plan or get a Funeral Plan quote here.
Discovery Life Limited. Registration number 1966/003901/06, is a registered long-term insurer, and an authorised financial services and registered credit provider, NCR Reg No. NCRCP3555. Product rules, terms and conditions apply. The Discovery Funeral Plan is administered by Phakama Administration Services (Pty) Ltd an authorised financial services provider with FSP number 1473.