What should you look for when choosing the best funeral cover?
It’s sad but true. When we die, those left behind face grief and bereavement. Day-to-day life gets placed on hold, as sorrow overtakes loved ones. What makes it even more difficult is that survivors are left with the task of arranging funerals and paying for expenses that those arrangements inevitably entail.
It’s vital to have the best funeral cover in place in the event of your death. After all, if your loved ones are already dealing with so much, the last thing you want is to burden them with expenses, debt, and financial hardship.
A quick search on the internet reveals hundreds of companies that offer funeral cover and even though most of them are well-respected, there are several that don’t have mourners’ best interests at heart.
How does one choose the right cover, and ensure that you are purchasing the best funeral cover?
Let’s take a look at what needs to be considered when you’re taking out this vital insurance.
What exactly is funeral cover?
Funeral cover is a financial safety net for your own or a loved one's funeral. The plan should swiftly pay out a lump sum. This allows survivors to cover expenses including family members’ transport, caskets, catering, flowers, and tombstones.
How does it work?
When you take out a funeral policy, you’ll pay a monthly premium. In the event of your passing, a specified amount will be paid out to a nominated person so that funeral arrangements can be made.
The best funeral cover will offer full family protection, usually for your immediate family (like your spouse, your children, and your parents). You can also choose a more tailored policy if you wish, so you can ensure the funeral costs of extended family.
Do you need funeral cover?
It’s essential to give loved ones an opportunity to lay you to rest with dignity, pay their last respects, and celebrate your life.
To do this though can come at a great cost. A funeral in South Africa can cost up to R80,000 or even more. It’s a cost you don’t want your loved ones to face, especially if they have to incur debt to afford it.
In fact, there are many advantages to having a funeral policy in place:
- A meaningful goodbye. Loved ones should be able to bid you a fond farewell, instead of stressing about paying for expenses.
- Quick access to funds. Even if the deceased left money in their will, legal processes can take time to wind up an estate, but a funeral policy can pay out within 48 hours.
- Cashback. These give you back a cash amount that totals a certain percentage of the premiums you have already paid over a certain number of years.
How much does it cost?
A funeral policy can cost as little as R50 per month. Of course, this premium may increase depending on the amount of cover you need, as well as the number of dependents who fall under the plan.
You also need to consider your budget. Choose a funeral plan that depends on your individual
needs and figure out how much you can afford, not just the expenses you’d like to cover. The
best funeral cover policies will allow you to tailor-make the policy, as well as the premium.
AVBOB is one of the best insurers for the best funeral cover
There are many funeral cover providers in South Africa. These include banks, insurance companies, and even chain stores. Be aware though. These policies offer cover that makes a profit for the providers.
AVBOB is different. We are a mutual society, an organisation that is owned by, and run for, our policyholders, not shareholders. The profits we make are reinvested within the society or paid back to our members on a regular basis.
We highly recommend that you shop around and secure a funeral cover that best suit your needs, and your pocket. The policy should be easy to understand, easy to buy, good value for money, and, obviously, easy to claim.
AVBOB is proud to say that we meet, and even exceed, all these necessities. Our motto is “We’re there for you”. We have proven this as we have more policyholders in South Africa than any of our competitors.
Make the right choice when deciding which is the best funeral cover for you. It’ll give you peace of mind, and your family the opportunity to grieve, and celebrate your life well spent.