Here’s the simple explanation: 

Funeral Insurance will cover many, if not all of the costs leading up to, and including, a funeral and the burial or cremation. Life Insurance, on the other hand, takes care of the people you leave behind after passing away.

Of course, there’s a lot more to it than that, so let’s jump right into it.
 

While You’re Here: How Much Does A Funeral Cost?

Key Factors About Funeral Insurance

Death comes to us all. We may not like to think about it much, but the reality is that at one point or another we all lose our loved ones and that we, ourselves, will also pass away. Sometimes we will be afforded the opportunity to plan for this event, and at other times it is both tragic and unexpected. 

We can’t predict how or when we are going to die, but we can ensure that the people we leave behind are not overly burdened while bereaved. In this aspect, Funeral Cover has a lot in common with Life Insurance, in that it significantly reduces the financial burden shouldered by those trying to honour the memory of the person who passed away. 

The cost of any dignified funeral could place significant financial strain upon you or your family. As we’ve mentioned in another article linked above, funerals are incredibly expensive, and many people would struggle to pay for them out of pocket. 

Funeral Cover ensures that a lump sum is paid out upon the death of the insured person. This allows the beneficiary – often a spouse or a family member – to cover all necessary costs. Certain insurance providers also offer additional benefits during this trying time, such as assistance with funeral arrangements and even trauma counselling for the family.

Where Funeral Cover differs tremendously from Life Insurance, however, is that the financial relief provided by Funeral Cover is short-term, for smaller, more immediate payments. This could pay for anything from the aforementioned funeral ceremony, burial or cremation, the coffin, flowers or catering. The sum is usually paid out within 48 hours once all the necessary documentation (such as the death certificate, etc) has been provided. 

It can be seen as an incredibly useful emergency fund, for when tragedy strikes out of nowhere. Life Insurance, on the other hand, answers the long-term questions.
 

Key Factors About Life Insurance

The grief of losing a loved one is often heightened by the task of having to tie up all the loose ends that person may have left behind. Life Insurance provides a long-term safety net to our loved ones when we die, become seriously ill or develop a life-changing disability.

The payouts from Life Insurance enables those people to continue living a comfortable life without having to worry about that sudden loss of income. It could be used to cover anything from day-to-day needs, education, medical expenses, businesses operations or any possible debt left unattended to.

Life Insurance payouts are far more substantial (commonly around three times your annual salary) and allow the choice of one lump-sum being paid out, or providing a fixed monthly income to your beneficiaries. These payouts may take some time, though – anything between a week to a couple of months.

The payout amount can often be increased, though, at higher monthly premium rates. Because illness and disability is also taken into account, Life Insurance premiums are determined by your risk profile (lifestyle, health, age, gender, and occupation), much the same way that vehicle insurance premiums are calculated, whereas many Funeral Cover options are set at a fixed rate for all.   

Unlike retirement funds, or any other funds that form part of your estate, Life Indurance does not require an executor or trustee to sign off on payment. 

Other Funeral Cover And Life Insurance Advice

Did you know that if your last will and testament says; ‘Give everything to my wife’, this will exclude any life insurance policies if she has not been named as the beneficiary, and your mother, for example, has. All payouts will be made to, and only to, the beneficiary you have named. In this regard, insurance policies are so powerful and iron-clad that what is stated within them will override your very own will. 

For this reason, we need to decide wisely, and be sure to update any new information with your broker.

When your loved one passes away, the first thing that you should do, in terms of settling all the financial affairs, is find the will and testament of the deceased. This may indicate certain wishes to be fulfilled, or arrangements to be made, for the funeral and how they wish to be laid to rest.  

The undertaker will usually arrange the death certificate, and if not, you can get a copy from Home Affairs. To claim for funeral cover, you will need this death certificate, a copy of your ID, a copy of the deceased’s ID, and all policy details. To claim from life insurance, you will need all of the same, as well as your marriage certificate if you are the spouse, and a medical report in the case of death by natural causes.

If the death was unnatural, such as suicide or murder, you’ll have to obtain the investigating officer’s report, the postmortem report and sometimes even the inquest report. 

The deceased’s bank account will also be frozen, and in order to obtain a letter of authority to the bank, instructing them to close the account and pay out funds to the executor of the estate, you’ll have to report the death to the Master of the High Court. You can do this via your local magistrates’ office at no cost.  

When it comes to spending the money being paid out, it’s important not to blow it all at once. This is a safety net, and not a gift. Instead, opt to reinvest, and grow the money in a unit trust fund. Or, if children are involved, it could be put to a good education, or education policy. This will ensure that the money can grow over time, and provide for your family for as long as possible.  

Looking For A Safety Net? Speak To The Guru To Find Out About The Best Life And Funeral Cover, At The Best Prices!

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The post Key Differences Between Funeral Cover And Life Insurance appeared first on Insurance Quotes 24.

It’s expensive to die.

Preparation for the end, having that time to put those steps in place, is a luxury many people never had access to. Because, as we all know, the worst could happen at any time.

The opportunity to ease that financial burden, with regards to the funeral service, burial / cremation and the settlement of outstanding debt, should certainly not be taken for granted.

Of course, in South Africa there is no real legal requirement to have a funeral at all. Customarily, however, a ceremony should still be held to honour the life which has passed. How much money all of this will end up costing you depends upon a variety of factors, such as the person’s religion, beliefs or final wishes.
 

Religion, culture and beliefs play a large role. These will dictate matters such as the method of laying that person to rest, the timeframe in which it needs to take place, the location, whether or not they were an organ donor and so on and so forth. Understandably, this can all become quite overwhelming.

Planning a funeral comes with a long checklist. Luckily, a funeral home will be able to assist you and recommend a variety of options.

Because affordability plays such a big role in the way we say goodbye to our loved ones, we decided to take a look at the average cost of a funeral these days, should you not have any estate, plans or policies in place.
 

Things To Take Into Account

A memorial service makes up a large percentage of the expenses. You may need to arrange a sermon, flowers, catering, literature, venue costs, seating, etc. If you’re looking at something like that, you’ll also need to get a rough estimate of the amount of people which will be attending. Perhaps the departed had some unordinary wishes as to how they would like to be laid to rest in accordance with their Will, or otherwise. Examples of these could include being buried inside their prized car, or shot out of a cannon and into the ocean.

In the end, these all depend on you, the family, and what you are able to afford. All of this is over and above the cost of the actual burial or cremation.

The cost of a grave (burial) is commonly more expensive than cremation, and that’s largely due to the cost of the ceremony and the purchase of the tombstone and coffin.

With a cremation, you will be given the option of an arranged viewing, beforehand, and you’ll also be notified of the date of the cremation itself. The crematorium could also arrange a service, which the funeral home will arrange.

So, taking all of that into account, let’s take a look at how much it commonly costs.
 

Funeral Home Fees

Regardless of whether you opt for burial or cremation, there are commonly a number of fees which you’ll need to pay. One of these is the funeral home or the undertaker, which will charge for arranging the funeral, storage and preparation of the body and the processing of all death-related documents, such as the death certificate.

These fees start anywhere from R5000. Some undertakers include the rental of the hearse, to transport the body in a dignified manner, but others add this service as an additional charge. If the body is being transported over the border – costs could skyrocket to well over R10 000, depending on the destination. Then, of course, you have the transport of the attendees to think about.Cremation also costs a little bit more in this regard, because you’ll need to obtain a cremation form from a doctor. This form is to confirm that a doctor has assessed the body and determined no reason for which the body can’t be cremated, and it costs around R600. 

Cremation Costs

The average cost of a cremation in South Africa, can be anything from R7000 to R15 000. With a variety of options, including a private cremation or a chapel cremation, these prices could fluctuate. Nevertheless, you’ll still need a coffin.

You could opt for a memorial service, before or after the cremation, with or without the ashes present. And then, of course, there’s the urn to think about.
 

Burial Costs

The casket (coffin) is one of the more costly layouts. The simplest of caskets, which is little more than a cardboard box, could cost up to R800. Average coffins, however, could cost up to ten times that amount – coming in at around the R8000 mark. Of course, top-of-the-range caskets cost far more, ranging anywhere between R35 000 and R50 000 or more.

Then, you’ll also have to purchase a grave. Depending on where, or the municipality, this could cost anywhere between R1000 to R6000. The latter is presumably in the shade.

Next, we have the tombstones. Anybody who has ever been to a cemetery will know that there are large, beautiful memorials and then there are the more common tombstones. These headstones, ranging from modest to lavish, can cost anywhere between R1000 and R20 000.
 

While You’re Here: Key Differences Between Funeral Cover And Life Insurance

Odds And Ends

If you’re looking at putting a bit of a service together for the funeral, you’ll need a venue – commonly a church. The venue could cost anything from R500 to over R10 000, depending on what you’re going for. Even a great big tent could cost around R5000.

Then, you may need to feed people, and catering costs can really get out of hand. If it’s in your culture to hold a ceremony involving sacrificial livestock, this also adds a couple of thousand to the bill. A full cow can cost up to R15 000.

Other costs may include hiring somebody to play music, or operate the slide show and sound system, or placing a funeral notice in the local newspaper, or decorating the venue. Candles, balloons or flowers are very popular. They add colour and fragrance to an otherwise mournful experience. Depending on how big you’re going, this could cost hundreds or thousands.
 

In Conclusion

Though quite a difficult topic of conversation to have with a loved one, many people opt for open communication and choose to discuss their wishes long before they die. Of course, it’s always better to put these into writing and develop a sort of after-death guide, if you will.

It seems almost inappropriate, to discuss the matter of money when getting ready to bid our loved ones farewell. We want the best for them, and ourselves, and we want to meet the expectations they may have had in life. To fulfil their wishes.

And it’s understandable that we would want to go with our first instinct and spare no expense.

But, bearing in mind that the average, low budget funeral could easily cost over R20 000, it’s important to remain rational and stay within your budget. In fact, the average cost of a funeral just two years ago was estimated to be between R30 000 and R40 000. Since then, we’ve seen numerous price hikes in fuel, VAT and electricity – all of which contribute to higher prices for pretty much everything.

All of these factors could easily overwhelm a family looking to get through this trying ordeal, and this, in a nutshell, is why life insurance policies and funeral plans are so popular and so necessary today.
 

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The post How Much Does A Funeral Cost? appeared first on Insurance Quotes 24.

We can’t predict how or when we are going to die, but we can ensure that the people we leave behind are not overly burdened while bereaved. In this aspect, Funeral Cover has a lot in common with Life Insurance, in that it significantly reduces the financial burden shouldered by those trying to honour the memory of the person who passed away. 

The cost of any dignified funeral could place significant financial strain upon you or your family. As we’ve mentioned in another article (linked below), funerals are incredibly expensive, and many people would struggle to pay for them out of pocket. 

Funeral Cover ensures that a lump sum is paid out upon the death of the insured person. This allows the beneficiary – often a spouse or a family member – to cover all necessary costs. Certain insurance providers also offer additional benefits during this trying time, such as assistance with funeral arrangements and even trauma counselling for the family.

Where Funeral Cover differs tremendously from Life Insurance, however, is that the financial relief provided by Funeral Cover is short-term, for smaller, more immediate payments. This could pay for anything from the aforementioned funeral ceremony, burial or cremation, the coffin, flowers or catering. The sum is usually paid out within 48 hours once all the necessary documentation (such as the death certificate, etc) has been provided. 

It can be seen as an incredibly useful emergency fund, for when tragedy strikes out of nowhere. Life Insurance, on the other hand, answers the long-term questions.

So, let’s take a look at our top tips for choosing the right Funeral Cover for you and your family.

While You’re Here: How Much Does A Funeral Cost?

Choosing Your Insurance Policy

Funeral Cover can now be obtained from a wide variety of sources, including banks, churches, funeral parlours and even retailers. The best route to take has and always will be to go directly through a good insurer, or a broker, so that you know exactly what you’re paying for and what you’re getting. 

This is the only real, reliable way of knowing that all of your questions can be answered to satisfaction. 

Only companies registered with the Financial Services Board (FSB) are permitted to sell funeral policies, so, whichever route you do elect to take, it’s vitally important to make sure that the financial service provider’s number, as well as the name of the insurer, is visible on your policy documentation.  

It’s also incredibly important to note any exclusions (referring to situations and / or instances that may be excluded from your policy) and waiting periods. 

There is commonly a standard waiting period of 30 days on these types of policies, which means that, for instance, if you should have a heart attack and die within the first month of owning the policy, the insurer may elect not to pay out.  

You also need to know if you’ll be given a grace period in the event of non-payment, or if you’ll be entitled to accidental death cover after your first premium, and how lump-sum payment will work. 

Check this information with your broker when inquiring about a policy.

Types Of Funeral Cover

There are, essentially, two types of funeral cover; stand-alone funeral insurance and funeral cover as an add-on to a life insurance policy.

As stated at the beginning of this article, funeral cover in itself can be seen as an incredibly useful emergency fund, for when tragedy strikes out of nowhere, while life insurance answers more long-term questions.

It’s important to be aware of the type of policy you’ve bought, and the waiting periods you can expect for pay-outs. 

In many cases. life cover won’t pay out in time to finance a funeral, while funeral policies are specifically designed to pay out quickly.

So, for those who may not have the funds at hand to attend to funeral arrangements, a stand-alone funeral policy may prove the better option. 

Who Are You Insuring?

You could purchase funeral cover for a number of people. Chief among these options:

• Yourself – This ensures that your death does not put an unnecessary financial burden on your family.
• Your Family – People often purchase funeral policies for their parents or other family members as they get older, lessening the financial burden on yourself or your family in the event of their passing.

You could purchase funeral cover for yourself, your spouse, your children, your parents, your extended family and even your employees. 

This last option has seen a lot of traction over the years, allowing employers to offer attractive benefit packages to prospective employees, and thereby gain both competitive advantages, and keep their employees happy. 

Need To Know: Key Differences Between Funeral Cover And Life Insurance

Services, Bonuses And Benefits

When searching for the right funeral cover, it’s important to ask a few questions, and to get these answers from your broker before making a final decision:

• Is it easy to submit a claim?
• How can I change my policy?
• Is it difficult to lay a complaint?
• How fast are claims paid?
• Are there any legal limits? 
• What exactly is covered, and how much will this cost?
• Will any additional payments be required?

Some funeral insurance policies will even have the odd benefit or bonus attached to them. Speak to your broker about this. 

Here are a few examples of the types of benefits found on various funeral plans:

• Education benefit – If the deceased was paying for a family member’s education, the education will be paid for a certain period;
• Grocery benefit – The family of the deceased will receive grocery benefits for a certain period after the death of the breadwinner;
• Paid-up benefit – Once the policyholder has died, payment on the policy ends. With a paid-up benefit, however, the other family members covered under the policy are still covered;
• Ambulance and emergency transport in the event of a life-threatening situation;
• Transport of the deceased and family members to the funeral;
• Trauma counselling. 

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The post Four Tips To Choose The Right Funeral Policy appeared first on Insurance Quotes 24.