Nothing in life is certain, but death and taxes! That’s true, we’re all born, we work hard, play hard, pay loads of taxes (on just about everything!) and at the end of this rollercoaster ride we call life, we eventually pass away. Very scary to contemplate it that way and possibly not the kind of conversation we wish to have over a pizza and a handful of dvd’s, however an issue that we have to plan for.
If a family member passes away, it is indeed a very agonizing time. All the relatives should be informed and then you need to start with the actual funeral arrangements. Everything from the flowers to the coffin and the food at the memorial service cost money and the last thing you need to stress about on top of all the tension and emotion is finding enough money to afford it all. Your answer comes in the form of funeral cover!
Funeral cover is a standalone policy and is typically offered to consumers once they obtain life insurance. You’ll be able to take it as an add-on to your life insurance plan and then it is usually declared that you have a life insurance policy with death benefits. It is nonetheless also possible to get the policy without having another type of insurance in position. You will normally have to go for some sort of a medical examination before you will be able to receive funeral cover.
If you have a family, having funeral cover in place is the accountable thing to do. And do not only plan for when you pass away, but also if one of your loved ones exchanges the part time for the eternal before you – having access to cash to deal with all the necessary arrangements and the burial will take a lot of tension off your loved ones.
The earlier you invest in such a policy, the better, because the more affordable it would be. Remember that funeral cover falls in the same grouping as life insurance cover: long-term insurance. This is different from vehicle insurance for example. On the subject of motor insurance your premiums are basically consistent, based on the motor vehicle you are driving, the value of the car etc. Sure, your premiums might be reduced a bit when you’re older and have proven to be a responsible motorist, but it won’t decrease forever. Long-term insurance works a bit different – the longer you have to pay for the policy, the lower your premiums. Consider it this way: If you obtain a life insurance coverage at 50 and might need the funds at 70, you have only 20 years’ premiums saved up. However, if you obtain this insurance policy when you’re 20 that will mean you have 50 years’ savings. The same basic principle applies with funeral cover.
Make sure that you have funeral cover in place as soon as possible. We are all born with an expiry date; make sure that you are prepared!