Do I need funeral cover?

Funeral costs are as individual as we are. It is difficult to say what funeral costs you and your family may incur and what the last wishes of your family members may be.

One of the banks has estimated that on average South African funerals cost between R12 000 and R60 000, with the most expensive ones costing as much as R150 000.

When you estimate the costs of a funeral and how you will fund it, consider the list of potential expenses you may incur.

If you or your family expect a big ceremony with many people attending, a funeral could prove expensive.

If a family member is working away from home, repatriating the body can be expensive and there may be legal expenses involved.

Depending on your savings, you may need cover, for the costs. 

But remember, funeral insurance premiums are an ongoing cost that can add up to a lot over a long period. The more you can save for funeral costs and reduce your insurance, the better off you will be.

If you are employed, before you take out funeral insurance, check what cover you have through a group scheme.  Remember, however, that this cover is often limited to immediate family.

Consider your life cover

When assessing whether you need cover and how much, also consider how much of any life insurance cover you have that could be used to cover funeral costs.

Remember that when you have to organise a funeral, you will need to pay certain costs immediately. If you do not have access to savings or credit to pay for these expenses while you wait for a life insurance pay out, funeral cover will be valuable.

Some life companies offer cover for funeral expenses as an add-on benefit on a life policy or an immediate expense benefit.

This benefit may be offered at no additional cost and the benefit may be an advance pay out of the amount for which your life is insured.

Alternatively, it may come at an additional premium and may also offer cover for your spouse or children.

TIP: USE FUNERAL COVER FOR FUNERALS Use funeral cover for funeral expenses. If you need to provide for your children’s education or an income for your family after your death, consider taking out a life insurance policy as it may well provide better and cheaper cover.