This is the festive time for reconsidering about your funeral policy, which you may have, to increase or double up its coverage. Now a days death are in increased number due to violence or accidents at any time, which no one can predict. In this uncertainty situation, if your loved ones are left behind without any financial support after your death, they may have to suffer a lot. So, it is better to consider such coverage whether it is festive time or not.
A funeral policy is a good thing for you to have so that your next of kin will not have to cover your expenses. It also takes the decision-making away from them at a difficult time. Ahead of time you select either cremation or burial. Once you’ve done that, you’ll know the coverage you need because you’ll research what these cost. Most people have no idea and guess low. Make sure that the coverage you buy has enough coverage, pays quickly, and has premiums you can handle financially.
Funeral ceremonies around the world are expensive but a traditional South African funeral includes costs of cleansing and other rituals as well as beasts for slaughter and can cost more than R 20 000. This cost is charged to the family of the deceased and they are usually burdened with the responsibility of providing transportation for mourners too, a very substantial cost all on its own. When the economy was operating at a good pace this was a big financial pitfall but now, in the current economy is can be devastating.
It is best to purchase a family funeral policy that will pay out immediately after the death of a family member. Unlike an individual funeral policy, a family funeral policy will pay out when the policyholder or any immediate family of the policyholder dies whereas the individual funeral policy only pays out when the policyholder has passed. Banks will freeze all of your accounts until the estate has been settled meaning that monies you may have saved to help cover funeral costs will not be readily accessible. As funeral directors require cash upfront it is ideal to have a family funeral policy.
An important element to be considered while estimating the coverage required from the funeral policy is getting the price list from local funeral companies and then add other elements like expense of hiring a priest, costs of rituals and rites, newspaper advertisement, expense of rental hearse and other expenses like providing necessary accommodation to guests. Doing a good exercise on your needs and necessary expenses required for funeral before deciding on a funeral policy will provide adequate coverage at time of need.
This is the festive time for reconsidering about your funeral policy, which you may have, to increase or double up its coverage. Now a days death are in increased number due to violence or accidents at any time, which no one can predict. In this uncertainty situation, if your loved ones are left behind without any financial support after your death, they may have to suffer a lot. So, it is better to consider such coverage whether it is festive time or not.
Many people make the error of not planning financially for a funeral and end up stuck with the mental weight of trying to come up with the extra funds to cover the cost. It is important to make sure you have an adequate funeral policy, which should offer premiums you can afford with prompt payout and decent coverage for all expenses that come with the funeral. An average funeral can expense anywhere from R 8000 to R10 000. The first decision you need to make when setting out to purchase a funeral policy is if you would like to be cremated or buried. Then you will need to calculate the coverage needed for these costs while keeping inflation in mind.
A funeral can cost quite a bit in South Africa, perhaps R20, 000, because there are a lot of traditional ceremonies involved such as cleaning the body and animal sacrifice. Also the next of kin is held accountable for the money it costs to put up out of town people in hotels. That can mean a huge outlay of money for the family.
It’s important to know that the money you put aside to pay for your final wishes will not be available to your survivors until your estate has been settled. Since funeral costs must be paid immediately you need to take measures to enable your loved ones to make arrangements during the period these assets are held frozen by the banks. One good solution is family funeral cover, which pays immediately upon the death of any family member unlike an individual policy, which limits payouts only on behalf of the policyholder’s death.
It is important to make an accurate calculation of the amount of cover needed for a funeral so that the financial needs of your family are met at the time of your death. The first step is to request local funeral companies to send you their price list. Using these, factor in additional costs associated with a funeral such as hiring a priest, programs, newspaper announcements, hiring a hearse, and guest accommodations. Setting aside time to do this will help you when choosing a funeral policy that will ease some of the burden for your family that comes with death.
