Funeral cover can help shoulder the costs that come with burying a loved one. It is also something that can give you one less thing to worry about when it comes to juggling the financial aspects whilst mourning.
However, knowing what it covers you for can lead to less frustration when it comes to the claims stage. Here is what you need to know.
What are the benefits?
Every person's needs are different from the next person's, especially when it comes to burial rites. How your family chooses to bury someone can influence the overall cost. On average, a funeral in South Africa can cost you anything between R6,000 - R50,000 or more.
However, with the advent of the pandemic reports have revealed that funeral parlours are now hiking their prices by 25%. Without a funeral policy in place, it can be a huge unexpected cost that could cost many families dearly.
Checking the benefits that come with a cover can help you know what you can expect when it comes to the claim stage. Funeral cover benefits will differ from insurer to insurer. For example, MiWayLife funeral cover benefits include:
You can use the payout to cover any funeral expenses that ensure you are able to bury your loved one with dignity.
Will you be getting your money’s worth?
Researching the expenses that come with carrying out a funeral can help give you a realistic picture of how much funeral cover is enough. However, you also want to check that you are getting the best value for your money. Calculate whether the amount you will pay is comparable with the benefit amount you will receive.
Keep in mind that insurers are legally obligated to not exceed certain cover amounts. By law, the maximum cover for children under the age of 6 is R10 000, and the maximum cover for children 6 years and older but under the age of 14 is R30 OOO.
What are the exclusions that come with your policy?
Be careful when reading the exclusions that come with your policy. These are things that can cause your policy to be denied and the claim not to be paid out. Not only will this be frustrating for your loved ones, but it will also mean your hard work will be in vain. Exclusions are put in place to protect you and to also protect the insurer from people who want to make fraudulent claims.