Funeral cover insurance is one of the most important insurance that everyone needs. It’s another form of planning ahead and covers the costs of funeral. You know that the cost of burial is taken care of and you won’t leave your loved ones with a financial struggle during a difficult time.
There are different types of plans under a funeral policy. Most funeral cover companies offer grave digging costs, cremation costs or burial fees. Remember, you might need to buy other things using your own money, think of flowers, decorations and catering. You will need a separate budget for all of these.
You can also contact different funeral cover companies and get quotes. Know what you are paying for. Rest assured, having a funeral policy gives you a peace of mind knowing your family will be taken care of even after you have passed away.
Types of life insurance plans
When you die, over-50s live insurance plan will pay your family a lump sum which will be used to cover the costs of the funeral. Check with your life insurance company for more information. Some funeral insurances only cover for burial fees.
Remember all policies come with terms and conditions. Some insurance plans won’t payout if you skip one payment. Always stick to the agreement contract that you signed with the insurance scheme.
Term life insurance
Term life insurance is fixed. If you die, you will be paid a specific amount. Most term life insurances come with the choice of a lump sum payout. Your family will use this money to cover your funeral costs.
State support for funeral costs
This type of funeral is only eligible for politicians or if you earn a low income. The Department for Work and Pensions offers “the Funeral Payment” plan to cover your funeral or burial costs. They also help in terms of buying flowers, coffin, documentation (death certificate), and travel for funeral arrangements.
Image Courtesy: thembisan.co.za