What is covered by a funeral policy?

At its most basic, a funeral policy will pay a cash sum upon the death of the insured to cover the costs of a funeral.

The amount of money paid out by the funeral policy will depend on the level of cover chosen. It is important to choose funeral insurance that pays an amount sufficient to the needs of the beneficiaries. This, however, needs to be balanced against the cost of the insurance premiums.

A cash payout is especially useful, because it can be used to pay for whatever expenses arise. Organising a funeral can be time-consuming and stressful, so it is helpful that, rather than having to negotiate reams of red tape to cover potentially unexpected costs, you can simply use the cash sum from the funeral policy to meet all financial obligations.

In addition, many funeral policies provide optional benefits. Many of these are designed to cover items that can make organising a funeral easier or to provide longer term benefit to the beneficiaries.

A vehicle access benefit makes a car available for a specified duration. This can be used to organise the funeral or to transport friends and relatives to the service.

A monthly provider benefit will pay a cash amount to the beneficiaries each month for a specified time. This can be a good way to ensure one’s family is able to pay for groceries and important items after the death of the insured. This benefit can act as a financial buffer against a sudden loss of income.

In some cases you can supplement your funeral policy with accident and disability cover. This will pay out a lump sum to your beneficiaries if you are accidentally killed, and has the added advantage of providing you with a cash payout if you are permanently disabled by an accident. This can be a safeguard against lost income if you can no longer work because of disability.

Hollard Funeral offers a comprehensive range of funeral policies in South Africa. A funeral insurance policy from Hollard Funeral can be customised to include a number of funeral plan benefits.