Do I Need Funeral Cover If I Have Life Insurance?
Choose insurance options that will provide your family with financial security.
It is important to understand the difference between funeral cover and life insurance policies, to determine if one is sufficient without the other. Payout time frames and terms of cover can significantly influence your decision and assist you in making the right choice.
What is the difference between life insurance and a funeral plan?
Life insurance is distinctly different from a funeral policy. When you take out a life insurance policy, you are required to pay a predetermined amount of money to an insurance company at regular intervals. The policy pays out a lump sum to a nominated beneficiary after your death, based on the terms and conditions of your contract. This amount will provide financial support to your family members and settle any of your outstanding debt.
Funeral policy holders pay low monthly premiums for varying amounts of cover, one can choose to cover one person or the whole family. A funeral plan is a type of insurance that covers the immediate costs associated with a funeral. In the event of your death, a cash lump sum will be paid out within days of your passing, to cover the funeral expenses and relieve grieving family members of the financial burden.
Do you require a funeral plan in addition to life insurance cover?
The deciding factor as to whether or not you require a funeral plan in addition to your life cover depends on the payout time period of the life insurance policy. Unavoidable procedures and red tape often delay the payout process and bereaved family members only receive the funds weeks or even months after the insured person has died.
Upon your death, your assets and cash are likely to be frozen for an undisclosed period of time. Your family will be responsible for your funeral costs, putting them in a difficult position financially, during an already trying time. If you are the breadwinner, how will your family afford to pay for a costly funeral? For this reason it is advisable to apply for an affordable funeral policy that will protect your family from financial stress in the event of your death.
Deciding between life insurance and a funeral plan, what is your best option?
There are many affordable funeral policy and life insurance ranges available in South Africa. Research these insurance options to determine what will best serve you and your relatives during unforeseen circumstances. Precautionary financial planning is recommended to ensure the welfare of your family.
If you would like your family to have funds readily available to them in the case of your death, select a funeral policy that will cover the basic costs of your funeral. As the breadwinner, if you think your family will not be able to cope with these costs, perhaps the best option is to apply for a funeral policy that will shelter them from financial turmoil.
Alternatively, if you would prefer that they receive extra funds to provide them with financial security going forward, a life insurance policy is a worthwhile acquisition.
The combination of both policies will provide the best cover and financial surety for your family. Bereaved loved-ones will receive the immediate funds required for funeral expenses and they will be provided for in the future. By planning for lifes harsh realities, your family will prosper, when you are no longer there to support them.
Whatever insurance policy you decide to purchase, make certain that you have read the fine print and that you fully understand each stipulated detail. Be sure that the policy you have taken out is the best insurance for you and your beneficiaries.
It is important to understand the difference between funeral cover and life insurance policies, to determine if one is sufficient without the other. Payout time frames and terms of cover can significantly influence your decision and assist you in making the right choice.
What is the difference between life insurance and a funeral plan?
Life insurance is distinctly different from a funeral policy. When you take out a life insurance policy, you are required to pay a predetermined amount of money to an insurance company at regular intervals. The policy pays out a lump sum to a nominated beneficiary after your death, based on the terms and conditions of your contract. This amount will provide financial support to your family members and settle any of your outstanding debt.
Funeral policy holders pay low monthly premiums for varying amounts of cover, one can choose to cover one person or the whole family. A funeral plan is a type of insurance that covers the immediate costs associated with a funeral. In the event of your death, a cash lump sum will be paid out within days of your passing, to cover the funeral expenses and relieve grieving family members of the financial burden.
Do you require a funeral plan in addition to life insurance cover?
The deciding factor as to whether or not you require a funeral plan in addition to your life cover depends on the payout time period of the life insurance policy. Unavoidable procedures and red tape often delay the payout process and bereaved family members only receive the funds weeks or even months after the insured person has died.
Upon your death, your assets and cash are likely to be frozen for an undisclosed period of time. Your family will be responsible for your funeral costs, putting them in a difficult position financially, during an already trying time. If you are the breadwinner, how will your family afford to pay for a costly funeral? For this reason it is advisable to apply for an affordable funeral policy that will protect your family from financial stress in the event of your death.
Deciding between life insurance and a funeral plan, what is your best option?
There are many affordable funeral policy and life insurance ranges available in South Africa. Research these insurance options to determine what will best serve you and your relatives during unforeseen circumstances. Precautionary financial planning is recommended to ensure the welfare of your family.
If you would like your family to have funds readily available to them in the case of your death, select a funeral policy that will cover the basic costs of your funeral. As the breadwinner, if you think your family will not be able to cope with these costs, perhaps the best option is to apply for a funeral policy that will shelter them from financial turmoil.
Alternatively, if you would prefer that they receive extra funds to provide them with financial security going forward, a life insurance policy is a worthwhile acquisition.
The combination of both policies will provide the best cover and financial surety for your family. Bereaved loved-ones will receive the immediate funds required for funeral expenses and they will be provided for in the future. By planning for lifes harsh realities, your family will prosper, when you are no longer there to support them.
Whatever insurance policy you decide to purchase, make certain that you have read the fine print and that you fully understand each stipulated detail. Be sure that the policy you have taken out is the best insurance for you and your beneficiaries.
