Everybody should have funeral cover, either by way of a benefit provided by an employer or a personal funeral policy.
So why do you need funeral cover if you have life insurance? Funeral cover usually pays out within 48 hours when your family urgently needs cash for a burial or cremation whereas life insurance can take months to pay out. Some modern policies offer funeral cover, included with life cover.
An average funeral costs about R20 000 to R30 000.
There are two types of funeral policies: Underwritten and non-underwritten.
Underwritten cover means that an insurer will consider your health and decide whether to grant the cover or not.
Non-underwritten cover does not take your health into account and acceptance is guaranteed. However, non-underwritten policies can be significantly more expensive than underwritten policies.
Please speak to us if you would like to know whether you have funeral cover attached to life cover or if you know you don’t have funeral cover in place.