South Africa
Personal
Business
Wealth
Funeral plans and life cover: Why you need both_14 images
Life, Car and Home Insurance

Breaking down funeral cover and life cover

Nobody likes talking about death, much less planning for it, but having the proper financial arrangements in place is essential to ensure that those left behind don’t have to carry the financial burden of someone’s passing while grieving.

There are 2 financial products that can help during such a difficult time: funeral cover and life cover. For you to make the right preparations for your financial planning, it’s important to understand what each entails and which benefits they come with.

Understanding funeral cover

Funeral cover is a type of insurance that provides a lump sum to take care of funeral costs and the immediate, short-term costs to support the family after the loss of a loved one. Providing money for funeral expenses means those who remain don’t have to pay for unexpected expenses that could drain their savings or put them in debt.

The benefits of funeral cover from Standard Bank

  • You can cover you and your spouse, children, parents and in-laws, as well as up to 8 extended family members for up to R100 000 with our Flexible Funeral Plan
  • The lump sum pay-out can also be used towards additional costs, such as catering, transport and memorial costs
  • Receive the money within 48 hours of a claim being processed if all paperwork is in order
  • It provides a dignified goodbye without putting immediate and possible long-term financial strain on your family
  • Get flexible cover to suit you and your family’s financial situation and monthly budget
  • Choose your benefits and optional extras
  • No medical tests are needed

Understanding life cover

Life Cover is insurance that provides financial security for you and/or your dependants in the event of death from illness or injury. Life Cover provides your beneficiaries with a lump sum pay-out that can protect your family’s standard of living (now and in the future), settle your outstanding debt, pay off a home loan or just provide a legacy for those you leave behind. Choosing how much life cover you need is about considering the longer-term costs and your family’s financial situation.

The benefits of life cover

  • Your loved ones won’t have to worry about living expenses
  • You can change and add beneficiaries
  • Cover requires no full medicals, just one simple blood test which we will arrange
  • You can apply for up to R10 million in cover
  • Pay-outs are tax free
  • You can increase your cover at any time
  • Get help applying directly over the phone or do a quick quote online and we’ll contact you back

Why do you need both?

To create a comprehensive plan that takes care of your immediate and future financial situation. A funeral plan provides short-term financial assistance, often within 48 hours of the claim being processed, specifically for the purpose of covering the costs associated with a funeral. However, after the funeral is over, you want to ensure your loved ones continue to be cared for. That’s why it’s important to get life cover, which pays out a larger lump sum amount that can be used to provide long-term financial security for your loved ones.

Terms and conditions apply.

Disclaimer

This article does not constitute advice. The material has been created for information purpose only and does not contain any personal recommendations. While every care has been taken in formulating the information (and any portal links) for this material, no member of Liberty gives any representation, warranty or undertaking and accepts no responsibility or liability as to the accuracy, or completeness, of the information presented nor to the safety and security of the portal links, where provided, or the sites to which they link.

Please consult your financial adviser should you require advice of a financial nature and/or intermediary services.

Terms and conditions apply. Products are underwritten by Liberty Group Limited, an authorised financial services provider (FSP2409).