Single or individual funeral cover is an insurance policy that pays out when the insured person dies. It is intended to cover the costs of the funeral and assist the family of the bereaved with a few daily expenses after losing a loved one.
The single person funeral cover as the name suggests covers only one person (individual), usually the person who has taken out he policy. If more than one person is being covered under a single funeral plan, then they would have to look at family funeral cover.
Benefits of Individual Funeral Cover
Nobody knows when death may occur and even if you cannot provide for your family after your death, you would at least not want to burden them with paying for your final send off. Single person funeral cover ensures that there will be money at the disposal of your family once you die. This can be used for a range of funeral costs from the burial plot to the casket and undertaker services.
Many funeral plans will also offer free assistance to your family, advising them on the different funeral procedures and costs, providing them with legal advice and even offering trauma counselling in some instances. And the best part of funeral plan cover is that it pays out within 48 hours meaning that your family does not have to wait to start preparing your funeral.
The benefits are that you have the peace of mind while you are alive that your funeral will not be major financial inconvenience to your loved ones. And your family has the benefit of knowing that they can give you the final send off that they want to, which is in keeping with their cultural preferences and without worrying about scraping up money, borrowing from relatives or becoming indebted in a micro-lender.
Cost of Single Person Funeral Cover
Single person funeral cover starts from as little as R40 per month but prices do vary depending on the level of cover you opt for. You need to be at least 18 years old and some funeral plans will not take a person older than 60 years while others will accept a person right till the age of 75 years.
Cheaper funeral cover will payout around R5,000 to R10,000 while more expensive cover will payout up to R50,000 or even more. There may even be double cover if you die in an accident and waiting periods fall away in the event of accidental death.
These days it is difficult to do a funeral in anything less than R10,000 and while it may not seem like a large sum of money, ask yourself if your family will have the cash in hand at the time of your death?
You may have savings and even a life insurance policy but do this money should be available to help your family with their living expenses, not pay out for your funeral. A single person funeral plan is not going to cost you an “arm and a leg” and wll not break your monthly budget. But it can make all the difference to your family when you are no longer there to support them.