Insurance to cover the costs of a funeral

Considering funeral expenses these days, many people prefer to take out an adequate funeral plan. This ensures that their loved ones are able to meet funeral costs, without compromising on the funeral service or becoming financially burdened.

At a minimum, your funeral plan should cover the costs of the service and the associated funeral expenses. In addition, many people consider it reassuring to take advantage of the optional benefits that can be included with some funeral plans.

Do I need a funeral plan?

Funeral expenses add up quickly; it’s reassuring to know that in the event of a death, sufficient funds are guaranteed to be paid out quickly.

In the event that you or your partner dies, the loss of income will affect your household’s finances and possibly make it harder to meet expenses. One of the functions of a funeral plan is to compensate for the loss of income, so that funeral costs can be paid without incurring debt.

An additional complication can arise in terms of accessing money from an estate. If the deceased has outstanding debts or a complicated portfolio of properties and assets, it may be a considerable amount of time before cash is made available to beneficiaries.

Even if the deceased’s finances are in good order, the complexities and bureaucratic requirements of managing an estate will often mean cash is not immediately available.

A sound funeral plan will pay a cash sum to cover the funeral costs upon the death of the insured.

What about optional funeral plan benefits?

The optional benefits you choose will depend on factors such as the number of dependents and your household’s financial situation. You will also need to balance the benefits of these options with your funeral plan budget.

Some options, like a groceries benefit, offer extended financial benefits to beneficiaries. This way, your funeral policy will provide a financial benefit for some time after the funeral costs have been met.

A qualified insurance broker can help you receive the right level of cover within your budget, with the optimum balance of benefits.

Who should I cover?

If you have children, you will probably want to make sure that both you and your partner have an adequate funeral plan with ample cover. In the event that either or both of you die, your children will not have to shoulder the funeral expenses in their time of need.

You could also extend this cover to other members of your household and even to parents and parents-in-law. This will ensure that you do not have to struggle to pay for a funeral service and that you are able to provide a suitably dignified funeral.

Discuss the costs and practicalities of a comprehensive funeral plan with an experienced insurance broker.

About the Author:

Hollard Funeral provides reliable funeral insurance in South Africa. Hollard Funeral offers a range of funeral plan benefits to cover funeral costs as well as help pay for essential goods. Contact Hollard Funeral to discuss your funeral plan needs.