Choosing the Right Funeral Cover Amount
September 21, 2018
There are varyiousfuneral products to choose from. So you want to know that you’re getting an adequate funeral cover amount but for a reasonable premium each month.
Product manager at FNB, Nthabiseng Sethabela-Makoeng, explained what good funeral cover is all about. It’s ensuring that you and your family have the financial means to provide a decent funeral with death.
She said there are certain factors to consider when looking at the amount of funeral cover you need. Nthabiseng Sethabela-Makoeng warns that cheap life insurance may cost you in the long run. It might not provide the financial security you want.
Funeral Cover Amount – Low Premiums without Compromise
You have to know your personal needs and know how to get affordable cover without compromising on value.
She also pointed out that inflation and post funeral expenses will need to be considered – .
Funeral Cover Amount –Inflation:
Make sure you understand if your funeral benefits increase over time. Each year when your funeral cover goes up, do you get additional benefits? You want benefits which increase each year with the premium increases. That means the amount for which you are covered does keep pace with inflation.
If a funeral policy doesn’t increase with the rate of inflation then there won’t be enough to cover funeral expenses. The danger with inflation however, is that your funeral cover will fail to keep up. You will find yourself having to cut back on planning the funeral you thought was possible.
Funeral homes do however sell pay-in-advance plans. While you’re still alive, you pay for your funeral in instalments or a one-time lump sum. The benefit with this kind of plan is that you lock in the cost of the funeral services, eliminating the worry of inflation.
Funeral Cover Amount – Post Funeral Expenses:
Funeral expenses don’t end with the lowering of the coffin into the ground. You have to think of the process of planning a funeral, because for instance a tombstone can be very expensive and something that you didn’t thing of. The tombstone can be affordable for some, but for many others, a tombstone can put them in debt for years. Tombstones can be anything from R2000 to tombstones that can be R500 000 or even 1 million rand if it is a huge, tailored tombstone.
Funeral Cover Amount – Know what You’re Getting
Funeral cover is essentially a monthly amount towards a funeral. This means the costs of the funeral will be covered so your family doesn’t end up bickering about who will pay the costs. Funeral plans cover a wide range of benefits, and when your funeral plan provider tailors a plan for you, it means understanding precisely what you’ll get for the premium you pay.
Tombstones and catering can put a person back financially if you didn’t make sure that these things were factored into your funeral cover. Sethabela-Makoeng concluded that it is absolutely necessary for policy holders to work out what kind of funeral they want so that the funeral cover amount can ensure a dignified send-off into eternity.
Next step: Complete and submit the form on this page to get your free funeral cover quote
All info was correct at time of publishing