We all want to protect our financial futures by taking steps today that can get us there. However, with so many options available it can get overwhelming, especially when it comes to finding the right funeral and life cover.
But what if you had the option of combining the best of both worlds under one premium? Can you combine a funeral and life cover policy? Here is what you need to know.
A start for people who are building financial safety nets
Building a financial safety net requires time and dedication to achieve. However, a starting place is creating a financial buffer from things that can take a huge chunk out of our savings if it is not planned for. Having funeral and life cover are usually advised as the stepping stones that are needed before setting out to build your financial safety net.
You are not limited to how many policies you can have when it comes to both funeral and life insurance. However, it is crucial to consider the implications that come with having more than one policy. It can come with juggling different premiums that will need to be kept track of, along with the annual increase that comes with it which can be overwhelming for some people.
Having your funeral and life cover separate could also mean you end up paying more. However, it is possible to take out a policy that comes with both under one premium. For example, MiWayLife offers a life insurance policy that comes with a built-in funeral policy under one premium.
The benefits of having an all-in-one policy
Having a policy that offers you the best of both worlds means that you will be able to have all the bells and whistles at an affordable premium compared to having two separate policies with different premiums. However, it is important to carefully read through the policy that you are being offered to make sure that it comes with features that are suitable to your situation.
Will combining both features impact your life cover payout?
Most life covers in South Africa that come with a built-in funeral cover can affect the payout. For example, if you are insured for R3 million and have a built-in funeral policy to the value of R50,000, the funeral benefit will be paid out within 24-48 hours, leaving the life insurance payout at R2 950 000. But will this be enough to take care of your loved one's needs?
It's important to know that insurers use the underwriting process to ensure that you and your loved ones will be adequately covered for what you can afford. You can also use our life insurance calculator to see how much life insurance you will need to give you peace of mind.