Funeral cover is one of South Africa's most sought after financial tools, with more than 17 million policy holders nationwide. This is due to the fact that funerals hold cultural significance for many South Africans. It has been proven to be one of the best ways to help families cope with the expenses that pile up when burying and commemorating a loved one. However, COVID-19 highlighted the fact that South Africans are often unprepared when it comes to facing losing a loved one and addressing the financial responsibility that typically follows this loss. Alongside this unpreparedness, the cost of funerals in South Africa has gone up significantly, especially given that the majority of families are unable to dish out R30 - R50 000 on hand, for a funeral service. This shows how important affordable funeral cover is, as it allows families to provide their loved ones with a memorable and gracious service, without having to take on debt and be placed under financial strain.
Although getting funeral cover seems like a simple and straightforward process, there are several things you can do before getting your policy, to ensure you decide on a policy most well-suited to you.
What is funeral insurance?
Funeral insurance is a lump-sum of money that is paid out by the insurer, when a covered family member (which will be stipulated in your insurance policy), passes away. Most funeral policies will payout within 24-48 hours of your claim being submitted, given that the claim is valid.
What you should do before buying a funeral policy
We have established the importance of funeral cover and the ways in which it can alleviate financial burdens, however there are a few precautions and things to be aware of when choosing a funeral policy. No two people have the same circumstances, and so here are a few things to be mindful of, to ensure the funeral policy you select is one that blends perfectly with your life and your unique financial situation.
Make sure that the funeral policy is underwritten by a registered insurer
Always ask the insurance service provider for the official name of the underwriting insurance company, and verify that company name's registration with the Financial Sector Conduct Authority (FSCA). For example, Simply Financial Services is underwritten by Hollard Life, an authorised and reputable financial services provider.
Avoid duplication
Many people fall into the trap of getting multiple funeral policies for themselves and their families, which often have duplicated terms and conditions. This can lead to a lot of unnecessary money going into your monthly premiums, yet the size of your payout does not reflect this amount. Make sure that you find a funeral policy that covers all of your interests and financial needs. Speaking to a certified financial advisor or broker is the best way to ensure you find a policy tailored to you.
Make sure a policy document is created and shared with you
Your name, as the policyholder, must be clearly stated, the names of all beneficiaries and insured persons must be clearly stated and any terms and conditions agreed upon between yourself and the insurer. This allows for a smooth claims process, if anything were to happen to one of the insured persons.
Why funeral cover?
Funeral cover is one of the more affordable insurance options, that allows policyholders to cover multiple family members under one premium. Every funeral policy serves a reflection of the insured person's unique needs, lifestyle and financial situation. No medical exam is required in the underwriting process - meaning that most people can qualify for funeral cover, and can receive the burial that they deserve and desire. Simply's Flexi Funeral Cover is a perfect example of a funeral policy that is straightforward, customisable to your needs and has a simple sign-up process. With sign-up available fully online via our website at www.simply.co.za, you and your family can receive cover within minutes, no blood tests or medicals needed. We offer cover that cares - for every life and for every farewell.
Simply Financial Services (Pty) Ltd is a registered financial services provider (FSP 47146). T&Cs online.