Is It Something Your Family Needs?
If you’ve been active on social media, watching television or reading mainstream media, you’ve been exposed to adverts from the funeral policy industry. While most people don’t like to think about dying, it is – unfortunately – the only guarantee in life. We will all eventually pass on from this life, so we may as well take a second look at companies who use buzz words such as ‘affordable funeral policy’ or ‘cashback funeral policy’, right?
What Is a Funeral Policy, Actually?
First things first, it is important to understand the purpose of a funeral policy and how it differs from other types of insurance.
There are different types of insurance that can easily be confused with funeral policies, namely life insurance, or funeral cover.
- Funeral cover is a type of affordable funeral policy, with a benefit that typically ranges from R20,000 to R100,000 and pays out within 24-48 hours to cover funeral costs.
- A funeral policy usually pays anywhere from R50,000 to R200,00 within approximately a week of the claim and the funds are meant to pay for funeral costs and related bills.
- Life insurance, on the other hand, is aimed at providing for the needs of the next-of-kin after the policy holder passes on. It can take up to 6 months before the claim is paid out.
Once you have established your exact needs, it is time to shop around for your funeral policy.
Step 1: Call Funeral Policy Companies
Your first step is to get in touch with funeral policy providers, or at least to research them online. Visit their websites and look at what other people are saying about their experiences with the company.
Step 2: Compare Funeral Policy Online Quotes
Once you have chosen your top top 5 funeral policy providers, it is time to compare the benefits. Remember, the best funeral policy is not necessarily the most expensive, but the converse also applies. Don’t just choose a cheap funeral policy to save money. You need to choose the best value funeral policy for your budget.
Some factors to consider in making your choice will be answered by asking the following questions:
Who are the funeral policy administrators? Look for a reputable business, and ensure that they have an FSP number.
Should you opr for a funeral policy with no waiting period? Each company may have a different waiting period.
How much does a funeral policy cost in monthly payments? Most often, funeral policies are payable in monthly premiums.
What does a funeral policy cover with your chosen companies? Some funeral policy administrators will pay the funeral-related services, while others will pay out a lump sum which you will use to pay funeral expenses.
Step 3: Pay Your Monthly Funeral Policy Premiums
Once you have chosen the best funeral policy for your needs, you should contact the funeral policy administrators to draw up your policy document. They will send you a funeral policy document to sign, specifying your rights and responsibility, including details of your monthly premiums.
Congratulations! You have now made an important provision that will provide your family with peace of mind. Now they won’t have to face the financial burden of funeral costs when you are no longer there to provide for them.