Who Needs a Funeral Plan?
Long story short, everybody needs some form of financial provision for the day they pass away. Death does not discriminate. Regardless of your age, race or financial status, everybody will be buried at some point. Being financially prepared is the responsible thing to do. Often we hear young people say they don’t need funeral insurance because they are young and healthy. This is a very naïve response. Young people die in accidents every single day. Death can come at anywhere, anytime.
Additionally, the longer a person waits to get funeral cover, the more expensive it will become. One of the most important factors of determining the premium for an individual is age. The older you are, the more you will pay per R1000 cover.
What Well Be Included in the Policy?
There are two clearly distinctive types of family funeral covers. We offer our clients two types of funeral plans; cash only and cash with benefits. Depending on the needs of our clients, one of the types of policies will be relevant. Below we will explain the main difference of both plans
Cash Only Family Funeral Plan
With this type of policy, the beneficiary or policy holder will receive a cash payout from the provider. In most cases, the claimant will be in full control of the funds. The cash will be paid to either the policyholder, or beneficiary the policy holder selected.
The beneficiary can allocate the funds as desired. With a cash only plan, there will be additional benefits that make the plan more interesting. This will often include additional payout for accidental death, shopping benefits, tombstone benefits, etc. The bulk of the benefits will however be in a large cash payout. The claimant can use multiple providers to arrange the burial. For example, the claimant can use different providers for printing, flowers & other funeral related services. This type of policy can be very effective if the claimant has some knowledge of arranging a funeral.
All remaining funds will belong to the remaining family. The remaining funds can be used for anything required after the burial. Often the money will be used to arrange the wake, or to cater for the family.
For a cash only policy, we recommend you look at Metropolitan Life or Discovery Life. Both providers have a proven track record and offer great cash only family funeral plans.
Cash with Funeral Benefits Plan
With this type of policy, the beneficiary or policy holder will receive a cash payout, and funeral services from the provider. At the time of the claim, the claimant will have the option to either take the money, or to have the provider arrange the funeral. Unlike a normal cash policy, the claimant can receive all the services required to arrange the funeral from start to finish directly from the policy provider.
Using the policy provider to arrange the funeral will have a wide range of benefit. This includes free use of the mortuary, discounts of funeral products and services, use of tents & chairs, etc.
The amount insured will be available to the claimant. The claimant can then select all the services required services directly from the provider. All the funds that remain after all the services were selected will be paid out to the beneficiary. The remaining cash can be used for anything the family desires. This type of plan is very effective if you need a hassle free burial.
This is the most comprehensive option we have to offer. If you are interested in a cash & benefits policy, we recommend that you look at AVBOB.