A Funeral Payout is a Matter of Timing
March 7, 2016
An early funeral payout is vital. When someone you love passes away you want to make sure that their final resting place is everything they would have wished for. You want to have immediate access to funds when your next of kin dies. Difficulties can arise where the next of kin need access to some of the deceased person’s money to pay for funeral expenses.
The Need is NOW
Life insurance policies to pay out long after death. For a Funeral Payout the need is NOW, within the next 2 or 3 days. You may have found out that burial and funeral costs are covered under the deceased’s life insurance policy. That will not help you in your hour of need if it only pays out in a few months time.
If the deceased person left small amounts of money in several bank accounts you may well be able to access the money in those accounts.
To organise a funeral, you will want to have access to the deceased person’s money to help pay for funeral expenses. These amounts may help you to arrange a decent funeral.
Liberty Makes Provision for an Immediate ‘Portion-Payout’
A life policy covers the policy holder for death, paying a lump sum or a monthly amount to the nominated beneficiaries on the policy. It is designed to support beneficiaries with their future financial needs after you are gone. Some uncomplicated life policies can pay out in a few days but sometimes it can take a few months.
Liberty Life as a life insurer and financial services company offer their investment, insurance and health products to more than 3 million people across Africa. Their mission is to protect you and your family from the financial impact of life’s unexpected events. This is why with their immediate expenses benefit on selected life cover policies you can expect a payout of about 10% of your life cover within 48 hours of receipt of the required claim documents.
Liberty recognises that this is an excellent way to take care of expenses that come up immediately after death before the full life assurance claim is finalised.
Having an Immediate Funeral Payout Alleviates Difficulties
Funeral insurance and life insurance are all about responsible financial planing for the future. While funeral insurance pays a lump sum quickly when you or next of kin passes away, life insurance is a bit more comprehensive, covering death, illness and disability.
Funeral insurance typically provides cover up to a maximum of R60 000, with your level of cover increasing each year with inflation. With life insurance, you choose a plan that you believe will be sustainable over time as premiums will increase. Funeral insurance claims pay out within 48 hours while life insurance claims could take a whole lot longer.
Get Your Timing Right
Whether you’re looking at your immediate needs or you’re looking at long-term care, it’s important to look at both funeral and life insurance in terms of the timing of their payouts.
The beauty about funeral policies is that they pay out quickly when a claim is made – mostly between 24 – 48 hours. This is a valuable benefit as it allows you to lay your loved one to rest without fretting about where the funds are going to come from.
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All info was correct at time of publishing