How can I save on funeral cover and still have a good policy?
June 1, 2017
How to save on funeral cover today is an important question. Because a funeral is also a vital part of the grieving process.
It gives us a chance to pay our respects to the dead, one last time. However, the costs can bankrupt you. Even with the very basic services ranging from R3000 upwards, having a dignified funeral will set your family back a bit.
And that’s not including extras such as transportation, food or livestock required for traditional ceremonies, etc. You can help to prepare for this cost by either getting a dedicated funeral plan or having it added onto your life cover.
A few Tips about How to Save on Funeral cover
- Don’t pay for benefits that you won’t need.
- Shop around for a quote you can afford.
- Decide upfront what is most important to you.
- Don’t work through a financial planner.
- Check exclusions and waiting periods carefully.
The Benefits of a Dedicated Policy
If you compare the amount of cover you receive and the cost, adding it onto your life insurance would be a little less expensive.
However, there is a problem with life insurance in that it does not normally pay out quickly enough to settle funeral expenses. Dedicated funeral policies deal with claims and payouts faster.
In addition, whereas life insurance is underwritten, a funeral cover is not. This basically means that with funeral cover you won’t need to have to undergo a medical check-up. Also, if you have a health profile that the company would consider a high risk, they won’t load your policy.
Again, the cost is going to be a bit more for all users because of this. Insurers can minimise costs by specifically excluding pre-existing conditions such as cancer.
How to Save on Funeral cover the Easy way
- Be prepared to shop around. This is a highly competitive industry and prices vary a lot from one company to the next.
- Don’t be taken in by benefits you don’t need. Some companies, for example, offer a provider benefit wherein the family receives a set sum every month for a set period, in addition to the payment. You are paying for this benefit though and if you have life insurance, it may be an unnecessary one.
- Decide what needs you want the policy to satisfy upfront and then start looking for an appropriate policy.
- Be careful of plans with premiums that don’t increase – does the cover for these plans stay the same as well? Is this going to keep pace with inflation?
- Are you paying a broker’s commission? If the product is being sold through a broker, you could end up paying more because of this commission.
- Waiting periods and exclusions are ways to reduce the overall cost of the policies for the insurers. Be sure you won’t have a problem with these. For example, death by suicide may not be covered at all.
When it comes to choosing cover that works for you, you need to be willing to do a bit of homework. This site will make it easier to get quotes from different providers. All you then need to do is to decide which policy suits your needs best.
Your best defence is to know what each policy offers and to stick to registered companies with a good reputation.
All info was correct at time of publishing