Wondering how to choose the best funeral cover for my family?
Your insurance portfolio will need to be adjusted as your life evolves and you become responsible for other people's well-being and financial stability. Finding the correct funeral cover for extended family and services for your requirements may be a challenging task. There is a lot of information you need to know before you can discover the best funeral cover for family that suits your unique requirements.
Buying funeral cover for extended family members is a way to cover the burial fees and associated expenditures left behind when a member dies. Beneficiaries in South Africa are legally limited to claim the cover amount specified by the policy, up to a maximum lump sum payout of R100 000 per family member on a funeral policy.
Funeral cover is frequently confused with life insurance and burial societies. Although both are a type of insurance that gives a payout to your loved ones, each has a different objective, value, cover amount, maximum payout, and premium, so examining these differences will help you decide which is the best option for your circumstances.
A burial society is a non-profit organisation created to help low-income individuals access an affordable funeral solution. You will pay a registration fee to join a burial society, and your monthly payments are pooled into one large fund along with all the other members’ fees. The money is then used to offer financial support to members' beneficiaries in the event of death, similarly to funeral cover.
Life insurance provides financial support for your family after death, but unlike funeral cover, it pays out weeks or even months after the funeral. Even if you have life insurance, you still need funeral cover, which pays out quickly to fund funeral expenses.
Why you should consider taking out funeral policy for extended family
A funeral can’t wait for months and most services are payable upfront. Including funeral cover for extended family members in your policy provides access to funds when you need it most and helps prevent them from taking out loans to host a respectable funeral. If you have family members who are approaching retirement age or are financially reliant on you and have never purchased funeral cover, you can add them to your policy.
Would your family have enough money to pay for your funeral if you had to die? If one of your loved ones passed away, would you have the money to pay for their funeral? If you answered no to one or both questions, it's time to conduct some research and select a funeral policy for extended family that's right for you.
How do you find the most affordable funeral cover for extended family? Keep on reading and we will explain.
How to get the best funeral cover for extended family
You already know you need a funeral policy for extended family to ensure burial costs are taken care of, but you'll also need to choose how much cover you require. Different policies provide varying levels of cover to meet people's particular demands and budgets.
Remember that when you purchase a funeral policy for extended family, you will be responsible for all the premiums, as the policy holder. It is a big responsibility. Thankfully, most providers enable you to reduce your plan, so if you suddenly can’t afford to pay the full amount for whatever reason, you can adjust your cover and or benefits.
Comparing funeral cover quotes and benefits will help you determine which is the best funeral policy for your specific needs. Some of the things to consider would be:
- How many extended family members can be included in your policy?
- How much cover does each member receive?
- What are the waiting periods or exclusions?
If you want funeral cover for extended family members, these are some things to consider:
Where can I find funeral cover for my family?
You want your funeral policy for extended family to reimburse the costs of a respectable funeral to make sure you or your family doesn’t incur any extra expense when an immediate family member passes. And you need it to pay a claim quickly! So, where can you find funeral cover for extended family?
Most companies that sell funeral insurance, will allow you to buy a funeral policy for extended family. It’s easier than ever to find online funeral cover for your whole family. A simple Google search will quickly reveal your opportunities, and you can even get funeral quotes or cover online. Alternatively, you could call your preferred insurance provider to ask if the cover is extended to family members on their funeral plans.
Before settling on the first option presented, however, please consider your needs based on the questions below.
Is the funeral policy cover amount sufficient to fulfil your needs?
The best funeral cover for family should provide enough money to pay for a respectable funeral. This includes the price of a coffin or cremation urn, the burial plot and service fees, as well as undertaker and collection charges. Your funeral policy for extended family should allow you to buy as much cover as you would need to host a funeral (up to the R100 000 limit imposed by the government), but the total sum assured is capped depending on the insurer and age of the extended family members, so make sure you get the right cover aligned to needs and budget.
Can you include members of your family and your extended family in the policy?
Affordable funeral cover for extended family ensures that your immediate household, as well as aunts, uncles, parents, and grandparents are also protected financially in the event that they pass away.
When you include funeral cover for extended family members in your policy, you prevent the stress of having to find the money to pay for funeral expenses out of your own wallet in the future. It is also less expensive to purchase a single policy for extended family members rather than separate policies for each individual, since it means you pay a single administrative fee, debit order cost, and bank charge. Also makes your admin easier!
Locate an insurance company that provides affordable funeral cover for extended family with the benefits you need to make life easier for everyone to handle funeral expenses.
Taking a few minutes to go through your options will ensure you choose the most appropriate funeral policy for extended family. Knowing you have cover ensures the difficult time of death is not made even worse with financial stress.
When you buy funeral cover for extended family members, you agree to pay monthly payments to cover someone else. This will naturally increase the monthly payments on your own funeral policy, but you will be rewarded with peace of mind knowing you have enough cover if and when you require it. You could find it cost effective adding multiple members to your funeral policy, much more cost effective than individual policies.
Do you still have questions about funeral cover for extended family members? Request a Financial Needs Analysis, or FNA, from a 1Life contact centre agent. The agent will lead you through the analysis and ask you questions about your income, assets, income, and obligations to help you determine how to best prepare for your family's future while you are no longer there.
The views and opinions expressed in this article are those of the authors and do not necessarily represent or reflect the views of 1Life Insurance or its employees.