Life Insurance vs Funeral Cover
June 19, 2018
Many people have asked the question over and over again – what arguments for life insurance vs insurance cover for funerals? Consumer lines of insurance companies receive plenty of queries from consumers asking this question.
The chief executive of Assupol Life, Bridget Mokwena explains that life insurance is the money paid to the beneficiaries of the insured person when he or she dies.
A funeral plan is money paid out to pay for the costs of the funeral when the insured person dies. That’s why insurers pay out funeral policies fast, as soon as they receive the claim.
The bottom line is that a funeral policy covers your family for all funeral costs. Life Insurance will provide for your family through life after the funeral.
Life Insurance vs Insurance Cover for Funerals- Life Cover is more Long Term
With life insurance, a policy taken out usually covers death. Sometimes it includes critical illness cover or disability cover too. Usually a lump sum is paid out to the beneficiaries. Sometimes the money goes into a trust fund. However if the beneficiary is a minor, they can draw money on a monthly basis. It is important for the insured to care for the beneficiaries once he or she is no longer there to carry the load.
If you take out a life insurance policy, you might be insuring yourself or someone else in the policy. If you are depending on your husband or wife for financial support, you might want to insure them. And if a person with life insurance passes away, the insurers pays out the value amount of the cover to beneficiaries that the policy holder has nominated.
Life Insurance vs Insurance Cover for Funerals – Different Types of Benefits
When it comes to life insurance, what you pay each month depends on your risk profile. They take your age into consideration, your gender, what job you hold, the status of your health, etc. When you take out life insurance, you may well need to undergo a medical examination whereas with funeral cover you won’t be required to have a medical examination.
There are some insurance companies however like Assupol Life who don’t require policy holders to take a medical test. There is also a benefit for disabilities. This is insurance which covers incurable mental illnesses and physical disabilities. These disabilities might make it hard for a person do their job or even impossible. Cover for a dread disease is also available. This cover helps you to replace what would be your monthly income and with dread disease, this cover will assist you with the costs that will come in such an event of a serious illness.
Life Insurance vs Insurance Cover for Funerals – Get Ready
Life can certainly throw some curve balls our way – unexpected events will cross our path. We cannot predict the future, but it is possible to plan for it. Certainly Life cover can provide funds for the long term, ensuring your loved ones are financially secure when you’re gone.
The truth is, that in today’s expensive world you actually need both a funeral policy and life cover to safeguard your family from the huge financial costs of funerals and then to ensure that they can go into the future well provided for. Speak to your financial advisor about life insurance and a funeral plan, you might decide you want to take out both, and you won’t be sorry.
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All info was correct at time of publishing