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Important questions you need to know about your funeral cover

25 Mar 2019 LIFESTYLE

By Motlagae Konyana

A funeral cover comes in handy in the event of the unfortunate loss of a loved one.  People often struggle to choose the ideal funeral cover amount for all the funeral expenses that may be incurred.

It is important to have a clear guide on the most basic elements of funeral cover in order to ensure that beneficiaries have the financial means give their loved ones a dignified send off.

Every family is unique with different needs and dynamics. A dignified funeral often differs from family to family; each family have individual preferences and standards they adhere to. Therefore, the stipulated funeral cover amount should meet the expectations of the family without additional funds having to be raised.

Here are 12 important questions that one should ask their financial institution regarding their funeral cover.

  1. Does the funeral plan allow you to choose the funeral director or parlour?
  2. What if your chosen funeral parlour goes out of business?
  3. What is the waiting period on my funeral policy?
  4. What happens if the insured person dies in another country or far away from home, will the policy cover the cost of transporting the body home for the funeral?
  5. Would I be able to downgrade if my premiums become unaffordable?
  6. Can you cancel the policy if your circumstances change? For example, if you have taken out funeral cover for your spouse but later get divorced?
  7. Are there cancellation fees and/or penalties?
  8. Can I take out more than one funeral policy, and what is the limit?
  9. Can two policy holders cover one person under the same financial institution?
  10. If there are outstanding premiums at the time of death, can you arrange to pay the outstanding amount in return for the agreed payout or will the policy simply be cancelled. 
  11. Can you change the details of the funeral plan? For example, if you choose to have a cremation rather than a burial or vice versa?
  12. Which cover and why would be suitable for a lady between the ages of 32-38 who is married with 3 children and 5 extended members?

“Funerals can be expensive, irrespective of your culture or religion. There are so many hidden costs. Funeral insurance pays out into the bank accounts nominated by the policyholder, leaving customers and their families free to arrange their final farewells as they see fit,” says Prudence Thipe, General Manger of distribution at Old Mutual.