Funeral cover: Making your loss a bit easier
Losing a loved one has a huge impact on our lives. We are faced with immense grief and trauma, and, if we haven’t taken out funeral cover, it can have devastating financial impacts too.
However, many companies offer funeral cover and this can soften the blow. It allows you to grieve without the added burden of worrying about whether you can afford the funeral, and its associated costs.
Funerals can be expensive. A basic funeral can cost you from R12,500 upwards. This figure, however, doesn’t include additional items and tent rentals, transportation of mourners, wakes, catering, and much more.
So, if you’re financially astute, and don’t want to saddle your loved ones with a financial burden, you need to consider taking out funeral cover.
What exactly does funeral cover entail? With so many companies and organisations offering plans, from traditional insurers to new players like banks, retail stores and football clubs, you need to ensure that you’re getting the best cover possible - one that gives you the widest range of benefits at the lowest possible costs.
What is the funeral cover market like and how does a typical plan work?
Let’s look at the basics first.
You will pay a single or monthly premium to take out a policy. Upon your or a loved one’s death, the policy will pay out a specified amount to help cover the costs of the funeral.
Any premiums that you pay will depend on several factors, including the ages of those covered by the policy (generally, the older you are, the higher the premium), the number of people on the policy (for example, your extended family), and, of course, the chosen amount to be paid out in the case of death.
You can also choose cover that will give you cash back if you don’t claim, retrenchment benefits, a waiver of premium if you are unable to pay (like in the case of disability), and immediate cash payment for initial funeral expenses.
Let’s look at some of the funeral cover policies that AVBOB offers
AVBOB understands that people’s circumstances differ. That’s why we offer a variety of funeral plans that best cater to your individual needs.
- Cashback Funeral Cover
This is a whole-life policy that allows you to insure your entire family including parents, parents-in-law, children, and extended family members.
You will receive cash back for every five claim-free years. If you don’t claim during this period, we will give you your premiums back in cash.
There are many added benefits to this plan. You can enjoy a six-month premium holiday in case you are retrenched. AVBOB also offers many free benefits to policyholders who have been with the plan for over 24 months. These free benefits include our funeral arrangement services, a coffin and hearse (valued at R12, 500), R2, 500 cash upfront to deal with immediate expenses, and free transport of the deceased anywhere in South Africa. These benefits will only apply if we are appointed to conduct the funeral. If you have been with the AVBOB policy for less than 24 months, you will still enjoy substantial discounts on funeral services.
- Extended Family Funeral Cover
Families come in all shapes and sizes. You’ll need to have a policy that will best apply to your circumstances. Our Extended Family Insurance allows you to insure your whole family, including parents, parents-in-law, children, and extended family members.
- Group Funeral Insurance for Pensioners
We understand that pensioners don’t earn a salary, so, if that’s your case, we offer a plan with lower premiums to meet your needs. If you’re over 64, you can join our Group Funeral Insurance Scheme for Pensioners.
How much will you pay for your funeral cover, and how much can you claim?
This is important, because in the unfortunate event that you need to make a claim, you want the maximum benefit for the premium you’re paying. As an example, if you have been paying us R150 a month, we will pay out R8,000 in the event of a claim.
This is just one cost for one type of plan, however. Your premium, be it monthly or once-off, will depend on which funeral policy you take out, so have a careful look at our full range of funeral cover policies, and find the one that’s right for you.
Let us help. We’re here for you
We understand the grieving that loved ones go through when someone they care about passes away. We want to make the entire process of taking out funeral cover as easy as possible. Call us on 0861 28 26 21, visit your closest AVBOB branch, or visit avbob.co.za to find out more about the funeral cover that best suits you.