Is funeral insurance necessary?

Whether you need funeral insurance, and what level of funeral cover you will require, will depend on your personal circumstances. In certain cases, funeral insurance will not be necessary. In most circumstances, however, a funeral insurance policy offers direct practical assistance to the insured person’s beneficiaries. Here is an overview of how funeral insurance can be helpful and when it is most needed.

To appreciate why many consider funeral insurance very important, it helps to understand the direct practical value of a funeral insurance and consider the consequences of not holding a funeral insurance policy.

What does funeral insurance do?

Burial cover provides a cash amount upon the death of the insured. This sum can be used to pay directly for the cost of a funeral, as well as for related expenses. 

The fact that funeral insurance provides a prompt cash sum is useful for a number of reasons.

When you die, your estate may be tied up by bureaucracy and red tape, even if your finances are in order.  With the cash payout from a funeral insurance policy, funds are quickly made available to the beneficiaries, whether or not they have access to the deceased’s assets.

A cash payout is also advantageous because of its flexibility. The cash sum can be used in whatever way is deemed necessary by the beneficiaries, so that unexpected or unplanned for expenses can be met without hassle or anxiety.

How will I benefit from funeral insurance?

Covering yourself with a funeral insurance policy is a means to protect your dependents in the event of your death. Choosing a funeral policy is an act of commitment to the ongoing wellbeing of those closest to you. By having adequate funeral insurance, you can rest assured that your family will not be burdened by the expense of a funeral when you are unable to directly provide for them. In addition, it is also possible to choose a number of optional funeral plan benefits to take care of your loved ones over the longer term.

As a sound practical step, extending funeral insurance cover to your partner and children will mean that, should an unforeseen death occur, the household will not suddenly be burdened by funeral expenses.

It is also possible to extend funeral cover to parents and parents-in-law which, in addition to the financial assistance this will provide, will also mean that you are in a position to provide a dignified funeral service of a high standard, in order to properly respect those who have passed away.

Can I afford funeral insurance?

The first question to ask when choosing any insurance product is whether you can afford not to have insurance. Bearing in mind the costs of a funeral, many consider a funeral plan an important way of ensuring there will be funds to pay for the cost of the insured’s funeral.

However, it is still important to find a policy that suits your budget while providing adequate cover. The cost of a funeral insurance policy will vary according to the level of cover you choose and other factors such as whether you augment your policy with optional funeral plan benefits.

Speak to an experienced insurer or a reputable insurance broker for advice on finding a funeral insurance policy that suits your needs and your budget.

About the author:

Hollard Funeral is a leading provider of funeral insurance in South Africa. Hollard Funeral offers a number of funeral plan benefits for comprehensive peace-of-mind.