Life cover benefit

Funeral insurance pays out a cash sum to cover the costs of a funeral service and related expenses. You can provide for your family in the longer term with the assured cash payout afforded by a life cover benefit.

A life cover benefit will pay an assured cash sum upon the death of the insured. This is an excellent way to ensure that your family are able to meet immediate and longer-term expenses in the event of your death.

A life cover benefit will see a substantial payout upon your death (the amount will depend on the level of cover chosen).

This is important for a number of reasons.

When you die, you are likely to leave a number of unavoidable debts. This is not to say you will leave your financial affairs in a disorganised state. Rather, given the conditions of modern credit and financing, many people have assets that have not yet been fully paid off, or services that require ongoing payment.

Your death could compromise your family’s ability to meet regular payments, which would put them at risk of forfeiting these assets. This could seriously affect the everyday running of your household. 

Investing for your children’s future

It is possible that you are already investing in a fund for your children, to pay for their education and other critical expenses. However, when you die you will no longer be able to contribute to any such investment. Rather than risk an inadequate, prematurely terminated investment for your children, you can get the assurance that they will be financially compensated through a life cover benefit.

If you do not yet have a plan for the ongoing financial wellbeing of your children, a life insurance benefit is a way of securing their future financial stability. A portion of the assured cash sum can be invested to further supplement your children’s income.

Protect your partner

When you die, your household budget will be affected by the sudden loss of income. This may be so even if your partner has a steady source of income, as your household budget will probably be balanced to take both income sources into account.

You can make sure your partner’s way of life is not compromised or, worse, that your partner is not suddenly burdened with debt upon your death.

Similarly, if your partner dies, your ability to meet household costs may be undermined. This can affect your quality of life and put you at risk of losing important assets. No less seriously, your children would suffer long-term financial detriment because of the diminished capacity to save money for the future. For this reason, it is wise to consider extending your life cover benefit to include your partner.

Speak to your insurer or an expert broker to help determine precisely the right level of funeral insurance and life cover benefits, so that you can protect your family without paying excessive premiums.

About the Author:

 Hollard Funeral offers quality funeral insurance in South Africa. Hollard Funeral provides a range of funeral plan benefits, including a life cover benefit. Contact Hollard Funeral today to get the right life cover option for you and your family.