Life Insurance Versus Funeral Cover

Life insurance is designed to provide financial protection to the beneficiaries in the event of the life insured passing due to accident or illness. It offers a lump sum pay out that can be used for whatever expenses the beneficiaries might encounter, be it to cover bond payments or pay for school fees. In short, it’s a financial safety net that can assist your family over the long term.

On the other hand, funeral cover is specifically designed to cover the immediate expenses associated with a funeral. These might include the cost of the service, burial, cremation, a headstone and catering. It is usually a smaller benefit that offers more immediate coverage. As a result, the premiums for funeral cover are typically lower than those you’d pay for life insurance cover.

The Best of Both

Did you know that when you take out life cover insurance with MiWayLife, your policy automatically includes a funeral benefit? This means that, in addition to the lump sum payout from the life insurance benefit, you’ll also enjoy peace of mind knowing that funeral expenses are also covered. This way, your loved ones don’t have to worry about how to attribute the life insurance coverage during a difficult time. More importantly, MiWayLife’s funeral benefit is accelerated, paying out within 48 hours with cover options that range from R10 000 to R50 000.

The Bottom Line

Still confused as to whether you’d want life insurance cover or just funeral cover? Remember, if you have dependents that rely on you, the former can be an essential safety net to help protect their financial future. If you don’t have anyone relying on you financially, consider a funeral policy to ensure you don’t financially burden your loved ones during a time of mourning. However, if you think you’d benefit from both coverage types, consider MiWayLife insurance coverage – that includes an accelerated funeral benefit – to protect your loved ones financially both in the short term as well as the long term.