Been wondering what the difference is between funeral cover and life cover? Read on to learn about the benefits and decide what would suit you best.
We don’t like to think about the inevitable, but planning for it is a responsible and caring act. Two financial tools that can help you do it are funeral cover and life insurance. Although these terms may sound similar, they serve different purposes. Understanding the difference between funeral cover and life insurance can help you make an informed decision to ensure adequate protection for your loved ones during a challenging time.
What’s The Difference?
As the name suggests, funeral cover is designed specifically to cover the expenses associated with a funeral. It offers a lump sum payout to the beneficiary upon the policyholder's passing, which can be used to cover funeral costs, burial or cremation expenses, transportation, and other related costs. Funeral cover typically provides lower coverage amounts compared to life insurance. Since they offer a smaller payout, the premiums are low which makes them a more affordable choice.
Life insurance, on the other hand, is a broader form of coverage that provides financial protection for the policyholder's beneficiaries in the event of their passing. It offers a more substantial payout that can be used to replace lost income, pay off debt, fund the education of dependents and maintain the family's lifestyle after the policyholder's passing. Due to its higher coverage amount, life insurance policies often involve higher premiums. The cost of these premiums can vary based on factors such as the policyholder's age, health condition, coverage amount, and the length of the policy.
If you’re still confused about which option to choose – a funeral policy or life insurance, why not consider an insurer that can offer you the best of both? MiWayLife offers a comprehensive 4-in-1 life insurance policy that includes funeral cover not just for you, but for your entire family as well. With this policy, you can obtain funeral cover for up to 4 parents, your spouse, and up to 8 of your biological, adopted, or stepchildren. However, it's important to keep in mind that adding more family members will result in an increase in your premium amount.
One major advantage of our all-in-one policy is the inclusion of an accelerated funeral benefit. It pays out 10% of the total available life cover amount within just 48 hours of submitting the necessary claim information. The payout is capped at a maximum of R50,000, ensuring that you have the financial means to give your loved ones the farewell they deserve without the added burden of worrying about funeral-related expenses during an already challenging time.
The Bottom Line
When deciding which option is best for you, consider your current financial situation, future needs, and the level of protection you wish to provide for your loved ones. At MiWayLife, we understand the importance of having a policy that not only secures your family's future but also provides immediate support when it matters the most. So why not get a hassle-free online quote today? It’ll only take a minute and our affordable premiums might surprise you.
