Everything You Need to Know About Extended Family Funeral Cover
November 10, 2018
Thinking about the possibility of death is never a fun prospect but at some point, you have to consider it. This means that you will have to take out a funeral cover policy, and if you are the sole breadwinner in your household, you might need an extended family funeral cover plan. If you are considering taking one out, then read on below for everything you need to know about this cover.
Extended family funeral cover – Who does it cover?
This is the number one question that everyone asks when considering extended family funeral cover: who, exactly, does it cover? Below is a list of the people who have cover:
- Life partner: There can be cover for a life partner, spouse or common-law partner under the extended family funeral policy. However, divorced people will have to update this on the policy if the ex-spouse is to have cover.
- Children: Your children can have cover under the extended family funeral policy. This includes adoptive children or nieces and nephews for whom you are a legal guardian. Adoptive children or legal wards will need to be listed as such, in case of their situations changing.
- Extended family members: This is the most important aspect of an extended family funeral plan with African Unity funeral insurance. The list includes people such as grandparents, uncle, aunt, brother, sister, cousin, nephew, niece, brother-in-law, sister-in-law, foster or stepfather/mother, foster or stepfather-in-law/mother-in-law, grandson or granddaughter.
Extended family funeral cover – Will my family remain covered after my death?
This is a difficult question to ask, but the answer is yes. Your spouse or other family members can opt to continue the cover once you have passed away. That means they will become the main member.
If you are part of a group scheme funeral cover, then the policy will terminate if the principal insured person passes away. However, if you are part of a church group or a funeral parlour group scheme, your spouse or partner can choose to take over the policy for as long as they are able to continue making payments. This means that even after you have passed, your family will still be covered.
Is there a limit to the number of people I can cover?
This is an important question to ask your financial advisor when deciding on a funeral cover policy. The most important aspect to consider is whether you can afford the premium for all the people you are planning to add to your policy.
The more people you cover, the higher the premiums become and the more expensive your cover will be. This is an important consideration, especially if you are the sole breadwinner of your household. You could look into asking your spouse to take out their own policy to cover some of your extended family members, so you can both carry the costs. Be sure to look at all extra or hidden expenses when choosing a funeral cover for yourself and your family.
Extended family funeral cover – Who receives the money in the event of my death?
This can be decided upon when you take out your policy. During the application phase, you will nominate a beneficiary and they will receive the money at the time of your death. It is important to decide on someone who you see as trustworthy and who will use the money responsibly.
Speak to a financial advisor about who they recommend as your beneficiary. It is important to base this decision on information rather than emotions. It might seem like a great idea to leave the money to your spouse, but if they have a history of misusing money or are in a lot of debt, it might not be the smartest decision. You will need to make a list of people who you feel are financially conscious, take this to your financial advisor and ask them for an honest opinion.
Extended family funeral cover – What documents are needed to make a claim?
If you or a family member passes away, you will need to make a claim with your extended family funeral cover provider. Below are the documents that you will need to provide:
- Certified death certificate (BI-15)
- Notification of registration of death (BI-1663)
- Burial order
- Certified copy of the claimant’s ID
- Proof of relationship (like a marriage or birth certificate)
- Should there be a forensic investigation, the investigators may need additional documents
You can acquire these documents from your local Home Affairs and from the funeral parlour who you have chosen to use. It is vital to have all of these prepared as soon as possible to avoid delays with the payout.
Extended family funeral cover – Prepare for all eventualities
In the event of your death or the death of a loved one, preparation is important to be when you make a claim with your funeral policy provider. There are waiting periods for claims, such as waiting six months for death by natural causes, and 24 months in case of death by suicide. You will need to find out from your chosen provider who is covered by their policies, if there are added expenses and what documents they need for a claim.
Once you have all of this information, you can choose an extended family funeral cover to meet your needs. Remember, it is your responsibility to ensure you read through your policy document and to ask questions to a reputable representative of the company if you are unsure about anything.
Complete and submit the form on this page to get a family funeral cover quote
All info was correct at time of publishing