Funeral Cover vs Life Cover
January 19, 2017
It’s impossible to predict the future. Like most people, you probably dream of a long and happy life that ends peacefully while surrounded by the ones you treasure deeply, free from worry and pain. Unfortunately, life has a way of throwing some curveballs, death can strike. Planning ahead for when this happens is essential. By doing this, you can pass on knowing that the ones you love are safe. Here we look at Funeral cover vs Life cover.
Two ways in which you can remove some worry for the ones left behind is by taking out a funeral and life cover plan – both can be of great value! Before deciding on one or both of these, knowing the difference between them is important.
Funeral Cover – Funeral Cover vs Life Cover
- is insurance provided for the short-term.
- It is to cover your family against costs with your funeral.
- It is mostly paid out in benefits such as airtime, grocery coverage, vehicle use and other needed items provided.
- Funeral cover pays out quickly and with little to no paperwork.
- Payout amounts are mostly small since it is only to cover funeral costs.
- The cover is for all family members in one policy.
Life Cover – Funeral Cover vs Life Cover
- This is insurance provided for the long-term.
- It is to cover all outstanding debts and provide for all your dependents that are left behind after your death.
- It is mostly paid out as a lump sum and beneficiaries can use it where needed.
- Life cover can take longer to pay out, and certain factors fall into account for example details on how the party died.
- Much bigger payouts, though, since life cover payouts are to cover your family for longer periods after your death.
- Life cover mostly only covers one person per policy or on the most a married couple.
Having one of these is of the utmost importance, but having both can safeguard your family against future burdens. The funeral cover will help those left behind with all expenses related to your funeral such as letting family members know, the burial, the coffin, flowers, funeral programs, food, etc.
Life cover will ensure that there is money available to settle all outstanding debts that you may leave behind, repay existing bonds and have provision for day-to-day expenses such as petrol, groceries, rent, electricity, etc.
Whichever you prefer, you need to ask yourself if your family will be able to carry the costs a funeral and life after that completely on their own in the unfortunate case of your sudden passing. If not, you need to plan ahead.
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All info was correct at time of publishing