What You Need To Know About Funeral Cover
When someone dies, funerals can cost a lot of money. Funeral cover helps your family pay for your funeral when you pass away. But there are important things you must know before you buy funeral cover.
1. What does funeral cover pay for? Funeral cover can help your family with:
- The burial and funeral service costs
- A tombstone
- Money for groceries and airtime
- School fees for your children
- Someone to talk to (counselling) during this hard time
2. You must keep paying every month If you stop paying, your cover stops immediately. This means:
- Your family won't get any money when you die
- You lose all the money you already paid
- Some companies let you skip payments, but you must check how this affects your cover
3. Be careful of cashback offers Some funeral policies offer cashback after a few years. But remember:
- This is not savings - it's just a small discount
- You often pay more in premiums than you get back
- Don't keep paying just to get cashback if the cover is too expensive
4. Watch out for these problems
- Waiting period: You must pay for a few months before the cover starts working
- Health conditions: You must tell the company about your health problems. If you don't, they won't pay when you die
- Multiple policies: Don't let many people take funeral cover for the same person. The company might only pay one policy
5. How to choose good funeral cover
- Compare at least three different companies
- Check how much the monthly payment will go up each year
- Make sure the company is registered with the government
- Get proper documents that show you own the policy
- Be honest about your health
Remember:
Funeral cover is there to help pay for funerals, not to make money. Only buy what you can afford each month. If you're struggling to choose or understand funeral cover, talk to us. We can help you make the right choice for you and your family.