In these times, it’s not unusual to see adult children taking care of their ageing parents physically and or financially. A common question Insurance companies are asked is: Who can take out funeral cover for parents?
Why you need funeral cover for parents
According to a study by David E. Bloom, David Canning, and Günther Fink, the proportion of people over 60 is expected to rise globally between 2005 and 2050. The researchers communicated their concern about a potential slow-down in economic growth, which is bound to happen as the population ages; there will be fewer people working in the labour force, and with less income, savings rates will reduce. That could mean that fewer older people will be economically stable in the future; they might have to rely on their children to take out funeral policies for them.
Health-related issues are commonly linked to an ageing population . But it also has an impact on other areas of life, such as the need for saving towards retirement. A village in South Africa was the subject of the Health and Aging in Africa: A Longitudinal Study, which gathered data on older people's income and health on average every two years.
The study found that employment rates drop even before people reach retirement age. A high percentage of older individuals who are still of working age do not work. Being unemployed is closely related with reduced incomes and hence a lesser capacity to consume, and therefore paying for their own funerals. For many adult children, buying affordable funeral cover for parents is a better plan than trying to access credit lines in a crisis when someone passes away.
Funeral cover for your parents
A growing number of elderly South Africans depend on their adult children as a result of the current economic crisis. If you are one of those people who is fortunate enough to be able to provide for your parents, you should think about the advantages of getting funeral insurance for your parents.
Funeral cover doesn't just cover expenses in the event of your passing. You can also include family members, such as your parents, in the plan as well as your children, your spouses and extended family members.
Who can take out funeral cover for parents?
Who can take out funeral cover for their parents? The answer is simple: if you are able to pay for or contribute to a funeral policy, you can take out cover on their behalf.
The benefits of having funeral cover for your parents
Life insurance policies can take several months to pay out. Funeral policies pay out faster than life insurance policies. They will be used to cover immediate funeral expenditures while the estate is being settled, allowing your family to avoid incurring funeral debt. Funeral expenses can cost a family a lot, from the food to the coffin, from the décor and flowers to the tombstone, and religious ceremonies. Thankfully, a funeral plan for parents will safeguard you against depleting your savings or taking out a loan, when a loved one dies.
What to do if you need to submit a claim on a funeral policy for parents
When your family has to deal with the tragic loss of a loved one, funeral cover for parents means that you will have the money on hand to pay the costs associated with a funeral. Cover is affordable and payouts are reasonably quick.
When a loved one who is covered on your policy passes away, simply follow the process detailed in the policy document to submit a claim or visit our claims page. This process is usually simple and reasonably standard throughout the industry. It typically involves submitting a claim form supplied by the insurance company, as well as, but not limited to the following documents:
- A certified copy of the death certificate.
- Copies of ID or passports for the dead and beneficiary(ies), or a birth certificate if under the age of 18.
- Proof of banking information for the beneficiary(ies) or estate, such as a signed, dated, and stamped statement from your bank that is less than three months old.
Money should be the last thing on your family's minds after a loved one passes away unexpectedly. Finding the best funeral cover for parents will help handle at least the financial aspect of a tragic time with dignity.
Insure your family with 1Life
Talk to 1Life today about a funeral policy for your whole family with up to 16 family members covered for up to R50 000 each. You and your family will benefit from a grocery benefit, payable when the main member passes, as well as headstone and repatriation services. Plus qualifying claims settled in just 3 minutes!
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.