Funeral Cover: The Ins & Outs Of Securing Your Family’s Future
Funeral cover is a financial safety net designed to cover the costs of your funeral when you pass away. In South Africa, it’s one of the most popular financial products, providing much-needed relief to families during a difficult time. Given the current economic climate, even the smallest monthly premiums can make a significant difference, so it’s crucial to understand what you’re paying for and whether it meets your family’s needs.
In this blog, we cover the essentials of funeral cover, helping you make informed decisions to secure your family’s financial future. We’ll explain what funeral cover is, what it includes, how to choose the right plan, and the costs of funerals in South Africa. Additionally, we’ll highlight top funeral cover options and provide advice on managing and cancelling policies.
What Is Funeral Cover
To understand what is a funeral plan you need to understand that planning for your death is never a pleasant task, but ensuring your family is financially secure when you pass away is one of the most thoughtful things you can do. Funeral cover provides a safety net, making sure your loved ones can give you a dignified farewell without the stress of financial strain.
Funeral cover is a type of insurance that pays for the costs associated with your funeral. It can also cover the funerals of any family members included in the policy. You get to choose the amount of cover you want and nominate a beneficiary who will receive the payout.
What Does Funeral Cover Include?
The specifics of what funeral cover includes can vary, but it generally covers:
Burial and Funeral Service: This includes the basic costs of the funeral ceremony.
Tombstone and Coffin: Essential items for the burial.
Additional Cover for Dependants: Options to include other family members in the policy.
Transport of Mortal Remains: Moving the deceased to a funeral home chosen by the family.
Groceries and Airtime: Immediate funds for necessary expenses.
Choosing The Right Funeral Cover
Selecting the best funeral insurance policy can be challenging due to the variety of options available. Here are some key considerations:
Number of People Covered: Most plans offer basic coverage for you and a few family members. Additional members will require extra premiums.
Type of Funeral: Think about whether you want a traditional funeral, cremation, or a memorial service. Ensure your plan covers the specific costs associated with your family’s traditions.
Affordability: Make sure you can afford the monthly premiums. Setting up a debit order can help ensure you never miss a payment, integrating it into your monthly budget.
How Much Does A Funeral Policy Cost In South Africa?
In today’s rising cost of living, paying for unexpected vents like a funeral. This is where funeral cover comes in, but how much does funeral cover cost in South Africa. The expenses involved in a funeral can range significantly based on various factors such as location, the services chosen, and personal preferences. In South Africa, funeral costs can start from as low as R3,000 and go up to R50,000. Here’s a breakdown:
- Lower-Income Households: Expected to pay between R3,000 and R10,000.
- Middle-Class Households: Costs range from R12,000 to R50,000.
- More Extravagant Funerals: Can cost up to R150,000.
Components Of Funeral Cover Costs
Several elements contribute to the total cost of a funeral:
- Funeral Home Services: These include basic service fees, embalming, body preparation, and use of facilities for visitation and ceremonies.
- Casket or Urn: Prices vary based on material, design, and craftsmanship.
- Burial or Cremation Costs: Burial costs include the grave plot, headstone, and burial vault. Cremation fees include the cost of the memorial service, the cost of the urn, and the cremation fee.
- Transportation: Flowers, family members, and funeral transportation expenses are included in these expenses.
- Miscellaneous expenses: Any additional services or amenities requested including flowers, memorial programs, obituaries, and printed materials.
How Much Does Funeral Cover Cost?
Funeral insurance can be surprisingly affordable. On average, a funeral cover policy can cost as little as R49 per month. However, the exact cost will depend on the coverage amount and the specifics of the policy chosen.
What Is R100,000 Funeral Cover?
Funeral cover is a type of insurance designed to cover the expenses of a funeral. In South Africa, the maximum amount of funeral cover you can have with a single insurer is R100,000. This means that if you take out a policy with an insurer, they can pay out up to R100,000 per insured life in the event of a valid claim.
Why R100,000 Funeral Cover?
Having R100,000 in funeral cover means that your family will receive up to this amount to cover funeral-related expenses when you pass away. This can include costs for:
- Burial or cremation services
- Casket or urn
- Memorial services
- Transportation of the body
- Other associated costs
What Are The Top 10 Funeral Cover In South Africa
Arranging a funeral is a significant task that involves both emotional and financial considerations. Funeral cover can alleviate the financial burden on your family during such a challenging time. While there are many funeral cover policies available in South Africa, including Standard Bank Funeral Cover, FNB Funeral Cover, Clientele Funeral Cover, and Metropolitan Funeral Cover, here are the top 10 funeral policy options in South Africa, each offering unique benefits and coverage to meet your needs.
1. Assupol Funeral Cover
Assupol offers the Excellence Family Funeral Plan starting from R70 per month, featuring affordable premiums that can increase yearly to grow your benefits, coverage for children throughout their lives, and up to R100,000 cover for you and your spouse, and R75,000 for other dependants.
2. Liberty Funeral Cover
Liberty’s Funeral Plus Plan starts from R40 per month, covering up to 32 people on a single plan, and includes benefits such as a R10,000 Tombstone Benefit per life assured, double the assured amount in case of accidental death, and an Inkomo Cash benefit of up to R10,000.
3. Discovery Funeral Plan
Discovery offers a comprehensive funeral plan from R34 per month, with benefits including 15% off monthly premiums for Discovery Health Medical Scheme members, CashBack benefits like one premium back every year and up to 100% of premiums back at age 65, and flexible cover options to suit various lifestyles and budgets.
4. Capitec Funeral Cover
Capitec provides up to R100,000 funeral cover from R25 per month, with coverage for up to 21 family members, personalized cover based on your needs and budget, various premium and cover options, and benefits including a waiting period waiver, accident death cover, and funeral support services.
5. TymeBank Family Protect Funeral Cover
TymeBank offers affordable funeral cover from R93 per month, with options to add your spouse, up to 5 children, and 2 parents, coverage amounts ranging from R10,000 to R50,000, and additional benefits like grocery payments, airtime vouchers, and death benefits.
6. Icebolethu Funeral Cover
Icebolethu is known for its comprehensive funeral services and benefits, starting from R70 per month, including a 10% Cash Back Benefit, 15 added benefits, coverage for funeral planning, catering, legacy products, and an Inkomo Plan for traditional African ceremonies.
7. AVBOB Cashback Funeral Cover
AVBOB provides cashback funeral cover, rewarding claim-free years with cash payouts, with benefits including up to R50,000 cover for main insured persons and spouses, accidental death benefits with no waiting period for accidents, special bonuses, and easy payment options with AVBOB funeral.
8. Hollard Funeral Cover
Hollard offers up to R50,000 funeral cover online, with quick setup, flexible options, coverage for up to 5 children at no extra cost, options to cover parents, parents-in-law, and additional children, and immediate effect and online accessibility.
9. 1Life Funeral Cover
1Life provides funeral cover with claims approved in under 5 minutes, offering up to R50,000 cover per member, fixed premiums for the first year, and benefits such as grocery, memorial, and repatriation services.
10. Sanlam Funeral Cover
Sanlam’s funeral cover offers comprehensive benefits and special features, including triple accident cover, cashback and premium holidays, savings benefits, and immediate cover options.
How To Cancel Funeral Cover Policy
In today’s challenging economic climate, many South Africans are looking for ways to cut down on expenses. With rising interest rates and the cost of living soaring, it’s understandable why you might consider cancelling your funeral cover policy to save some money. If this is your decision, here is a breakdown of how to go about it.
Can You Cancel Your Funeral Cover Policy?
Before we unpack how to cancel your funeral cover, let’s unpack, is it even possible? The answer is yes, you can cancel your funeral cover policy, but there are a few things to keep in mind:
- Cooling-Off Period: You have 31 days from the date you receive your policy contract to cancel your plan without any penalties, provided you haven’t made a claim and no benefits have been paid. Any premiums you’ve already paid will be refunded during this cooling-off period.
- After the Cooling-Off Period: If you decide to cancel your policy after the initial 31 days, you will not receive a refund for the premiums paid.
Steps to Cancel Your Funeral Cover Policy
Here’s a simple step-by-step guide to help you through the process:
- Review Your Policy: Before cancelling, review your policy documents to understand the terms and conditions related to cancellation.
- Contact Your Insurer: Contact your insurance provider to inform them of your decision. It’s advisable to do this in writing (email or letter) to have a record of your request.
- Complete Cancellation Forms: Your insurer may require you to complete specific cancellation forms. Ensure you complete and return these forms promptly.
- Confirm Cancellation: Once your request is processed, request written confirmation that your policy has been cancelled.
Secure Your Financial Future with National Debt Advisors
As you navigate the complexities of managing funeral cover and other financial obligations, now is the perfect time to review your overall financial health. Carefully examine all your insurance premiums to ensure you aren’t duplicating coverage. Redirecting even one or two premiums towards paying off your debt can significantly improve your financial situation.
If you’re struggling to keep up with payments on all your debts, insurances, and everyday living expenses, don’t hesitate to reach out to National Debt Advisors (NDA). National Debt Advisors’ team of experts is here to help you manage your finances more effectively and ensure you have the coverage you need without unnecessary expenses. By working with National Debt Advisors, you can achieve a more stable and secure financial future. Contact us today.
