What to look for in funeral plans when you need to buy one. That’s something that worries a lot of South Africans. because what do they buy that will cover their funeral expenses when they die.
It’s a very valid worry – with funerals starting at around three thousand rands. According to research, the average funeral will cost you anywhere from three thousand to ten thousand rands. A fancy service with lots of mourners, the more the costs add up.
Take the death of popular actor Joe Mafela, for example. It is said that the church charged a fee of R89 000 to host the memorial service.
Now, you might not be a celebrity and so you might not be looking at costs quite that high. But costs can grow very quickly and families often find themselves having to go into debt to cover funeral expenses.
So here’s what to look for in funeral plans.
Think ahead – What to look for in funeral plans
- A funeral plan should pay out enough to cover the type of funeral your family will want for you.
- Even a very inexpensive funeral will cost upward of three thousand rands.
- For a fancy ceremony, costs quickly rise.
- You need to make sure that you understand the terms and conditions of your policy.
- The cheapest option for your funeral plan is not always going to be the best.
By planning ahead, your family is protected from unwanted debt when you die. You can ensure that they get the money that they need. when they need it.
What to look for in funeral plans
- Is the company offering the plan a registered financial services provider?
- What benefits, extras or add-ons are included, exactly?
- How long after the claim has been submitted will the money be paid out?
- Who is covered on the plan? There are plans that cover the whole immediate family. You shouldn’t just assume that this is always the case, though. Some plans will allow you to add additional family members so that your whole extended family is covered.
- Does the plan offer benefits for the living as well? Some plans include airtime, access to medical facilities, or grocery benefits. These might be important to consider, especially if you are the main earner.
- Does the cover keep pace with the times and does your premium increase?
It is tempting to choose a policy where the premium never increases. However, the payment will also never increase. And, considering the way costs keep skyrocketing, this could be a costly mistake.
How much Cover do I Need?
There is no easy answer for this but you need to consider all the possible costs that might be involved. For starters, there is the cost of the undertaker and the burial or cremation. In addition, your family will need to cater for those attending the service. They must also have money for incidentals such as phoning around to arrange the service, ads, transport or thank you cards etc.
In addition, your family will need to cater for those attending the service. They must also have money for incidentals such as phoning around to arrange the service, ads, transport or thank you cards etc.
Work out how many people are likely to attend and work on a hall big enough to hold the service in. Then consider what other expenses you may need from there.
Above all, you need a funeral plan in place. Now!