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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 insurance 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 a funeral policy 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.
Funeral cover for your parents-in-law
Parents-in-law can be added as extended family members provided they are 74 or younger when the cover starts.>
Why cover for parents-in-law matters
For many South African families, parents-in-law are part of the family. You may live together, help support them financially or want to make sure they can have a beautiful send-off when the time comes.
Adding parents-in-law to your funeral cover policy means there is money available for funeral expenses, without putting extra financial pressure on the family.
Get the best funeral cover for your parents
Money should be the last thing on your family's minds after a loved one passes away. Finding the best funeral cover for your parents will help you manage funeral finances at a difficult time. Your funeral insurance policy should ensure your parents have a respectable funeral, offer additional benefits such as a headstone benefit, be affordable and backed by an insurance company that pays valid claims quickly. Your insurance company should also be registered as a licensed financial services provider with the Financial Sector Conduct Authority.
1Life Insurance ticks all the boxes!
Talk to 1Life Insurance today about a funeral policy for your parents or the 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.
We answer your questions about our products and services!
Can I get funeral cover for my parents if they have existing health conditions?
Yes. In most cases,existing health conditions will not prevent you from getting funeral cover for your parents.
With 1Life Funeral Cover, you can add eligible parents and other family members to your policy, subject to the applicable entry age limits and policy terms. Parents can generally be covered without medical examinations, making it easier to protect loved ones against funeral expenses. You can include up to:
- 2 spouses
- 5 children (up to age 21)
- 9 extended family members, including parents and parents-in-law
Additional premiums apply for each insured family member. Always refer to your policy schedule and policy terms for full details.
What is the maximum age for parents to qualify for funeral cover?
Parents can be added to a 1Life Funeral Cover policy up to the applicable entry age limit. Currently, parents and parents-in-law can be covered up to age 74, subject to the policy rules in force when cover is taken out.
If you are considering funeral cover for older parents, it is best to apply as early as possible to ensure they qualify for cover.
Are there waiting periods when taking out funeral cover for parents?
Yes. A waiting period applies for death due to natural causes.
Natural death claims are covered after 6 completed months and 6 paid premiums.
Accidental death is covered from the commencement of the policy once the first premium has been received.
Waiting periods help protect all policyholders and are standard practice in the funeral insurance industry
What documents are needed to claim funeral cover for a parent?
To submit a funeral cover claim for a parent, you will typically need the following documents:
- A completed claim form
- A certified copy of the death certificate
- A certified copy of the deceased's identity document
- Medical reports, if requested
- Any additional documents required to assess the claim
Depending on the circumstances of the claim, a claims consultant may request further supporting documentation before the claim can be finalised.
If both of my parents pass away at the same time, will funeral cover pay for both claims?
Yes, provided both parents are insured on your policy and both claims meet the policy terms and conditions.
Each insured parent is covered as an individual insured life. If both parents pass away in the same incident and both are listed on the policy, separate valid claims may be assessed and paid according to the cover amounts selected for each parent.
Can I add my parents to my existing funeral cover policy?
Yes. With 1Life Funeral Cover, you can add eligible parents and parents-in-law to your existing policy, subject to age limits, insurable interest requirements and policy terms. Additional premiums apply for every family member added to the policy.