The loss of a family member is always painful, but unplanned funeral arrangements can make the experience even harder. The best way to ensure a simple and stress-free process is to choose a funeral policy that suits your needs.
A funeral policy eases financial distress. It can allow you and your family to spend more time on funeral arrangements and offering each other emotional support, instead of worrying about the money needed to cover funeral costs.
What are the benefits of a funeral policy?
It gives you quick access to money – if all the relevant documentation is in order, a funeral policy pays out quickly, so that you won’t have to worry about finding the money to pay for all the costs.
What should a basic funeral policy offer?
It depends on the type of funeral policy. Some offer the basics and others offer a wider range of benefits. If you buy a policy from a funeral parlour for example, it would typically cover the costs of the actual funeral (coffin, flowers, etc.). However, most traditional funeral policies from insurers provide a lump sum payment to the beneficiary selected, or to the person who took out the policy if someone covered by the policy has died. That person then uses the money to pay for the funeral themselves. You can choose which type will work best for you, depending on your needs.
How quickly will an insurer pay out a lump sum?
This depends on the insurer, but there is normally an agreed turnaround time of 24 to 48 hours once all documentation is received. Some insurers even pay claims faster. Sanlam pays most valid funeral claims within 4 hours, once all documentation is received.
How do I get the best out of my funeral policy for me and my loved ones?
Look at more than one funeral policy before you decide which one to opt for. Compare, say, three or four policies based on your family’s needs, the funeral provider’s reputation as well as the ability to pay claims.