When should I take out a Funeral Plan? And other questions.

Funeral plan questions answered here to help you decide whether or not you should spend the money.

There are things like medical insurance, life insurance, etc. and you probably agree that the products are worthwhile.

But what about funeral cover? It’s not a policy that pays out a lot of money so is it worth the premiums you have to pay? Is it really something that you need?

  • Think about it. Funerals cost a few thousand rands. Does your family have that kind of money?
  • Funeral cover is a way to prepare for the unforeseen. so It is never too early to start.
  • If you have a family that you care about, you need to take out funeral cover.
  • Funeral plans are not just for you – they cover your family and parents as well.

    Some funeral Plan questions Answered to Help you Decide

Funeral plan questions answeredHow long Does a Claim take to Process?

The main reason that most people consider taking out a funeral plan is so that they have ready access to money for the funeral. In most cases, the policies pay out within two days as long as you have the required documents and your payments are up to date.

In most cases, the policies pay out within two days as long as you have the required documents and your payments are up to date.

Must the Money be Used for the Funeral?

This seems like a ridiculous question – after all, it’s called “funeral cover” for a reason. What might surprise you though is that most policies pay you out directly. You can then use that money for whatever you want.

What might surprise you though is that most policies pay you out directly. You can then use that money for whatever you want.

Who should I Cover?

A lot of funeral plans today will cover your immediate family without charging extra. (As long as they qualify in terms of age.) This means that you, your spouse, your children and your parents might all be covered.

That is not to say that you can’t add other people but then you would have to pay extra for them.

Are there Different levels of Cover?

You do need to find a plan that is affordable for you. The more benefits the policy has, the higher the premium is likely to be.

What you want is a good balance between value and benefits. Be wary of paying extra for benefits that you don’t really need. At the same time, don’t just get the cheapest plan you can find either.

Downgrading the Plan

If you fall on hard times at a later stage, you can ask about downgrading your plan to a less expensive one. Some policies will allow this, some won’t.

It might be tempting to cancel the policy and start a new, cheaper policy but then you will have to go through the standard waiting periods again, leaving you uncovered for around 6-12 months again.

Funeral plan questions answered – Do I get Cash back?

That is not how a funeral plan works. There is no investment benefit built into the policy. That means that there is no cash back for not claiming and no cash back if you cancel the policy.

Are funerals Really that Expensive?

Well, it all depends – you can get a basic cut-rate funeral for around R3000 but that is completely no extras and usually a cremation. Once you start adding in things like the coffin, the memorial service, the food, transport, etc. the costs pile up quickly.

Do you need to get funeral cover for yourself?  Do you want to leave your family with a mountain of debt?

If the answer to either of those questions is, “Yes”, you need funeral cover.